Schaeffler to strengthen entry into defense business - Schaeffler to strengthen entry into defense business
Schaeffler has announced major changes to its business strategy, including job cuts and expansion into new sectors. The company, which currently employs around 112,000 people globally, plans to reduce its workforce in Europe by 4,700. At the same time, it is pushing into defence and robotics, targeting significant revenue growth in both areas.
In November 2024, Schaeffler revealed plans to cut 2,800 jobs in Germany and a further 1,900 across the rest of Europe. The move comes as the company shifts its focus away from traditional automotive sectors toward emerging industries.
The firm is now prioritising defence, aiming to establish a dedicated division for military applications. While its current defence partnerships remain limited—with drone manufacturer Helsing as a key collaborator—Schaeffler expects this sector to generate €1 billion in revenue within five years. By 2035, defence could account for 10% of the company’s total income.
Beyond defence, Schaeffler is investing in humanoid robotics. A recent partnership with Nuera Robotics will see advanced robots integrated into its production lines. The company predicts this venture will also grow into a billion-euro business over time.
Unlike its automotive operations, Schaeffler’s defence and robotics expansion is driven by long-term strategy rather than existing technology. The goal is to diversify revenue streams and secure future growth in high-potential markets.
The job cuts will reduce Schaeffler’s European workforce, but the company is betting on defence and robotics to drive future profits. If successful, these sectors could contribute billions in revenue within the next decade. The shift marks a significant change in direction for the industrial giant.
