The Schaeffler Group is cutting 450 jobs in Berndorf. Jobs move to cheaper countries abroad. A “successful financial year” was reported in August.
In the future, automotive and industrial supplier Schaeffler’s factories in Slovakia, Romania and China will take over production from Lower Austria, which will cease at the end of 2025. It is no consolation that job losses in Berndorf represent only 10 percent of announced job losses in Europe.
Alarm signal for coalition negotiators
State Governor Johanna Mikl-Leitner therefore considers the news from the German headquarters as “bad news” and the Employment Service (AMS) in Lower Austria must now provide the best possible support to those affected. And it also holds the future federal government responsible: “This alarm signal must reach the negotiators in Vienna.”
Costs and bureaucracy as the main evils
Business representatives are in the same vein. Both Kari Ochsner, chairman of the Lower Austrian Industrial Association, and division chairman Helmut Schwarzl of the Chamber of Commerce (WKNÖ) see high energy and personnel costs as the biggest problem facing industry in this country. And the ‘oppressive bureaucracy’ also makes it increasingly difficult for local businesses to survive. And history has shown that once production sites and jobs are lost, it is difficult – and in most cases impossible – to get back.
“Nice blow for the location”
The Freedom Party in Lower Austria is also calling for a “180 degree turnaround in economic policy”. The closure of the Schaeffler plant in Berndorf is the next final blow to the site in Lower Austria, says Michael Sommer, economic spokesman for the FPÖ in the state parliament. “
Track record last year
Remarkably, the business press service reported in August: “Schaeffler Austria is diligently increasing its sales.” Last year, a turnover of 241.9 million euros was reported, an increase of 2.5 percent compared to 2022. The end result: a “successful financial year”.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
