The Schaeffler Group (Germany, Electric Motor Bearingsparent of INA, FAG and Barden bearings) announced an aggressive cost-cutting program that potentially puts all 25 of its German facilities on four-day workweeks.
The move was prompted by continuing weakness in the overall economy, Electric Motor Bearings and particularly by demand from the auto industry, where Schaeffler gets 60% of its sales.
Approximately 20,000 of Schaeffler's 31,000 employees in Germany are potentially affected. However,Electric Motor Bearings a few facilities will not be included, Electric Motor Bearings specifically those involved in producing industrial bearings and for markets which remain relatively strong.
Schaeffler hopes that by reducing hours by 20%, it will be able to avoid going through the rounds of layoffs which have been plaguing other manufacturers. Electric Motor Bearings Last October, the company eliminated virtually all of its 4,000 temporary and contract workers.
Spokesman Detlef Sieverdingbeck said Schaeffler expects the shortened workweek program to be in place for the next six months.
