BERLIN, Sept. 2 (Xinhua) — German automotive and industrial supplier Schaeffler has reduced working time by an average 25 percent for about 250 of its 500 employees in the special machine construction sector at its Erlangen-Frauenaurach location, the company announced on Monday.
Schaeffler did not specify how long the new regime would last. The measure would be in effect "until further notice," a company spokesperson said.
Last week, Schaeffler announced that as of Dec. 1, contracts of employees whose working hours had been increased from 35 to 40 hours per week would be reduced to the agreed 35-hour week.
Back in March, the company had presented an efficiency program that included the possibility of short-time work for its employees. At the time, Schaeffler had also said that it would cut 700 jobs in Germany.
According to Schaeffler, the measures were the result of a number of external and internal factors that had led to a significant weakening of the EBIT (earnings before interest and taxes) margin of its business before special effects in fiscal year 2018.
The overriding goal of the measures was to achieve sustained improvement in the EBIT margin over the next three to four years and to generate a high single-digit percentage profit margin in the future.
Schaeffler has around 90,500 employees at approximately 170 locations in over 50 countries and has a worldwide network of manufacturing locations, research and development facilities.