Schaeffler realigns Industrial division, move to reduce workforce by 500 jobs 

Especially in the Europe region, which also includes the Middle East, Africa and India, this means defining how responsibilities are allocated between the corporate functions in Schweinfurt with their overall strategic aspects and the operating selling functions in the regions.

ETAuto Bureau
NEW DELHI: German auto component manufacturer Schaeffler has decided to realign its Industrial division. The development program, CORE, is aimed at improving the efficiency and competitive position of the Industrial business for the long term in order to facilitate further improved profitable growth.

As part of the program, the company currently expects to reduce the Industrial division workforce by up to 500 jobs in a socially acceptable manner until the end of 2017, most of them in Germany and Europe. The program does not entail lay-offs or closing down locations.

The key elements of this program are increased sales growth, enhanced delivery performance and service quality, stronger customer orientation as well as cost savings and efficiency improvements.

The realignment program has been prompted by the performance of the division. The division recorded a revenue increase of 7.5 percent in the first half of 2015, as compared to same period last year.

In order to meet global market requirements, the company is planning to gradually increase localisation in their main growth markets and optimising the supply chain.

Especially in the Europe region, which also includes the Middle East, Africa and India, this means defining how responsibilities are allocated between the corporate functions in Schweinfurt with their overall strategic aspects and the operating selling functions in the regions.

Klaus Rosenfeld, CEO of Schaeffler AG, stated: "The Industrial division is key to our strategy and has always been part of the Schaeffler Group's core business. The "CORE" program will help us strengthen the Industrial division in the context of our integrated business model, focus it on future challenges, and bring it back to sustainable profitable growth."