Schaeffler completes earnings improvement program early, adds about 1,800 partial retirement deals
Schaeffler has implemented the structural measures from its November 2024 earnings improvement program ahead of schedule and concluded about 1,800 additional partial retirement agreements.
- 3,715 (around 79 percent of the 4,700 target)
- 1,768
- 290 million euros, expected to be exceeded by more than 20 percent
- approximately 55 million euros
What Happened
Schaeffler has completed the structural measures announced in November 2024 earlier than expected and, in addition, concluded about 1,800 new partial retirement agreements. The group had signaled plans for gross job cuts of 4,700 positions through socially equitable measures by the end of 2029; by September 30, 2026 it had cut 3,715 positions, around 79 percent, and it has the necessary contractual arrangements in place for the remaining 985 positions, putting it on track to reach the target by the end of 2028, one year earlier than originally expected. The 290 million euros in savings planned for 2029 are now expected to be exceeded by more than 20 percent, the one-off expenditures tied to the job cuts are under budget, and surplus provisions of approximately 84 million euros for restructuring costs will be written back effective September 30, 2026. The additional partial retirement agreements are expected to produce a positive cash flow effect as soon as 2027 and a positive earnings effect of approximately 55 million euros for 2029, while over the period up to 2030 Schaeffler will need to form additional provisions totaling approximately 70 million euros for one-time payments.
3,715positions
Around 79 percent of the 4,700 gross job cuts targeted, with contractual arrangements in place for the remaining 985.
Schaeffler announces its earnings improvement program, signaling gross job cuts of 4,700 positions through socially equitable measures by the end of 2029.
3,715 positions, around 79 percent of the target, have been cut, and surplus provisions of approximately 84 million euros for restructuring costs are written back.
1,768 new partial retirement agreements have been concluded.
A positive cash flow effect from the additional partial retirement agreements is expected.
Schaeffler expects to achieve the job-cut target, one year earlier than originally planned.
- 20 percent of employees in the eligible age groups (those born up to and including 1971), the equivalent of approximately 1,300 employees from direct and indirect areas
- 1,768 new partial retirement agreements
- Partial retirement block models with an active work phase and a passive work phase were offered and could be concluded by mutual agreement between employees and their managers.
- Terms range from two years (one active year and one passive year) to eight years (four active years and four passive years).
- Terms and conditions were based on the partial retirement provisions included in the structural measures announced by Schaeffler in November 2024.
- The new agreements were concluded against the background of the expected termination of existing partial retirement instruments under the pension reforms announced by the German government.
“By implementing the structural measures announced in November 2024 and by additionally concluding about 1,800 partial retirement agreements, we are taking a further step to reduce cost structures at our German sites, strengthen our competitiveness, and further develop the age structure of our workforce in a balanced manner.”
“The conclusion of additional part-time retirement agreements provides many employees with predictable pathways into retirement and is an example of responsible and collaborative personnel policy amid challenging times.”
Why this matters
The move directly affects Schaeffler's German workforce, where employees in eligible age groups gain predictable paths into retirement while the company shrinks its cost base. It also signals to competitors, suppliers and investors that the group expects to hit its job-cut target a year early and to beat its planned 2029 savings.
Terms in This Story
- partial retirement
- A phased exit from work in which an employee reduces working hours before fully retiring, often split into an active phase (still working) and a passive phase (released from work).
- block model
- A partial retirement arrangement organized in fixed blocks of time, such as one active year followed by one passive year.
- gross job cuts
- The total number of positions removed before counting any new hires or internal reassignments.
- provisions
- Money a company sets aside on its books in advance to cover expected future costs, such as restructuring payments.
Summarised from the linked release; details can be imperfect — always verify against the original source.