German machine and car parts maker Schaeffler (SHA0.DE) on Tuesday said it planned to lay off 4,700 people in Europe after its core profit almost halved in the third quarter, highlighting challenges in the European automotive industry.
"This is the company's response to the challenging market environment, the increasing intensity of global competition, and the ongoing transformation, particularly in the automotive supply industry," Schaeffler said in a statement.
Germany will see the biggest staff reduction, with plans to lay off around 2,800 people at ten sites.
The rest of the job cuts will span across Europe, including two site closures, Schaeffler said without naming the locations.
About 1,000 jobs in Europe will be reduced by displacements, bringing the net layoffs to 3,700 people.
The German ball-bearings specialist expects to save around 290 million euros ($315.4 million) per year by the end of 2029 through the efficiency plan, which will cost around 580 million euros.
Earnings before interest, taxes and special items (EBIT) fell 44.9% to 187 million euros in the July-September period, versus analysts' mean forecast of 209.4 million euros in a consensus poll compiled by Vara Research.
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