The German automotive giant Schaeffler will lay off 4,700 employees.

In a statement from Schaeffler, it was noted that the company's board of directors has approved regional structural measures focused on Germany and Europe aimed at increasing competitiveness in the long term.

The measures are said to include actions resulting from the ongoing transformation in the automotive supply industry, with the statement indicating, "The measures foresee a gross reduction of approximately 4,700 jobs, including about 2,800 in Germany."

The statement added, "This decision has been made in response to the challenging market environment, the increasing intensity of global competition, and the ongoing transformation processes affecting the automotive supply industry."

MEASURES TO BE IMPLEMENTED AT 5 FACILITIES

The statement reported that the downsizing measures will affect 10 facilities in Germany, with the remaining layoffs to occur at 5 facilities across Europe, including the closure of two plants.

Moreover, it is noteworthy that the European automotive sector is facing numerous challenges, including high production costs, declining demand, and increasing competition from China, particularly in electric vehicles.

Volkswagen, Europe's largest car manufacturer, is planning to close a factory in Germany for the first time due to high production costs.