Schaeffler Announces Additional Job Cuts, Plant Consolidations
11/09/2016 - German roller bearings manufacturer Schaeffler said it plans to lay off 500 people and consolidate plants in Europe and the Americas as part of an expanded cost-cutting effort.
In a statement, the company said sustained weakness in the market and unsatisfactory financial results are prompting it to undertake a second wave of cuts. The affected jobs are administrative positions indirectly related to the division.
Alongside the cuts, the company also said it will look to step up its sales growth, in part by introducing new and cost-optimized products.
“Our goal is to improve the EBIT margin of the industrial division to 10% to 11% by 2018. This can only be accomplished if we continue to reduce our costs given stable market conditions, better utilize existing production capacities and increase our sales efforts,” Stefan Spindler, the division's chief executive, said in a statement.
Alongside the cuts, the company also said it will look to step up its sales growth, in part by introducing new and cost-optimized products.
“Our goal is to improve the EBIT margin of the industrial division to 10% to 11% by 2018. This can only be accomplished if we continue to reduce our costs given stable market conditions, better utilize existing production capacities and increase our sales efforts,” Stefan Spindler, the division's chief executive, said in a statement.
