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German car parts maker Schaeffler to cut 4,400 jobs

German car and industrial supplier Schaeffler said Wednesday that it will slash 4,400 jobs due to the impact of the coronavirus on the automotive sector.

Published: 9 September 2020 16:46 CEST

German car parts maker Schaeffler to cut 4,400 jobs

The entrance area of the headquarters of Schaeffler AG in Herzogenaurach, Bavaria. Photo: DPA

The company said it will downsize capacity and close several factories to save around 300 million euros ($354.5 million) annually by 2023.

The jobs cull will focus mainly on 12 locations in Germany and two elsewhere in Europe, the Bavaria-based firm said.

Chief executive Klaus Rosenfeld said the restructuring was “unavoidable in order to improve Schaeffler's long-term competitiveness and ability to realise future opportunities”.

It is the latest blow for the beleaguered car sector which is struggling to recover from weeks of lockdowns earlier this year that disrupted production lines and kept dealerships closed around the globe.

READ ALSO: Demand for new cars falls in Germany as coronavirus cases rebound

Even after the lockdowns, demand has been slow to pick up as customers fret about economic uncertainty.

Fellow German parts supplier Continental announced last week that more than 30,000 jobs worldwide – around 13 percent of its workforce – would be “modified, relocated or made redundant” to cope with the pandemic fallout.

German Chancellor Angela Merkel met with car industry bosses Tuesday to discuss their plight but the high-level talks ended without concrete steps to help the sector.

READ ALSO: Germany aims to become 'first country in world' to have driverless cars

“The automotive industry, which was already undergoing structural transformation amid the move to electrification, has been hit hard by the Covid-19 crisis,” Schaeffler said in a statement.

Global vehicle production for 2020 is forecast to be 20 percent lower than in 2019, and a return to pre-crisis levels is not expected until 2024 at the earliest, the statement added.

To combat the effects of the pandemic, Schaeffler said it had already implemented plant closure days, increased its voluntary redundancy scheme and made use of Germany's subsidised short-time work programme.

Schaeffler currently employs around 84,000 people.

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Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions.

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds.

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local.

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with.

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