German automotive supplier Schaeffler is eliminating 1,300 positions through voluntary early retirement schemes, targeting employees born in 1971 or earlier.
The cuts follow a decline in revenue and mark the latest effort by the company to streamline its workforce amid a challenging market environment.
Schaeffler shares (SHA0N.DE) climbed in trading following the announcement, as investors viewed the restructuring as a necessary step to improve cost efficiency.
The move aligns with broader trends in the German automotive industry, where major players are aggressively reducing headcount to stabilize profitability.
The job cuts come as other industry giants implement similar measures.
Porsche is set to eliminate up to 5,000 positions, while BMW Group is cutting approximately 8,000 jobs worldwide by the end of 2027.