BERLIN (dpa-AFX) - Schaeffler AG (SCFLF.OB), a German maker of rolling element bearings for industries, said on Tuesday that it is axing 1,300 jobs globally to rein in fixed costs and reduce overcapacity.
The company will cut jobs mainly in the Engine & Transmission Systems and Bearings business divisions within Automotive Technologies, and in the company's central functions.
The Group's cost cutting measures, to be largely implemented by the end of 2026, are anticipated to generate annual savings of up to 100 million euros.
The measures will generate transformation expenditure of about 130 million euros, most of which is expected to be recognized as a provision in the financial statements for the fourth quarter of 2022.
Matthias Zink, CEO Automotive Technologies, said: 'We are moving into an environment where being the technology leader is no longer enough. The critical factor now is to have in place the competitive cost structures needed to further accelerate the transformation process and ensure that Schaeffler is fully geared for powertrain electrification. And that in turn requires us to reduce our cost base and cut overcapacity.'
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