Schaeffler to strengthen entry into defense business - Schaeffler to strengthen entry into defense business
Schaeffler is pushing into new markets as it faces challenges in its core automotive business. The company recently announced job cuts across Europe while also expanding into defense and robotics. These moves come as it targets 10% of future revenue from emerging sectors by 2035.
In November 2024, Schaeffler revealed plans to cut 4,700 jobs in Europe, with 2,800 of those in Germany. The decision followed weak demand in its automotive division, forcing a restructuring of operations.
A month later, in December 2025, the company partnered with drone maker Helsing. Under the deal, Schaeffler will handle manufacturing and procurement of electronic components, securing supply chains and scaling production. Helsing will retain final assembly of the drones. Beyond drones, Schaeffler is entering the defense sector with ambitions to build a dedicated division. Current defense-related sales stand at around €100 million annually, but the firm expects this to grow to €1 billion within five years. The expansion leverages existing automotive technology and capacity, though defense is not the primary focus. The company is also investing in humanoid robotics, predicting it will become a billion-euro business. By 2025, Schaeffler aims for total sales of €30-35 billion, with 10% of revenue coming from new areas—including defense—by 2035.
Schaeffler’s shift into defense and robotics marks a strategic pivot as it adapts to a changing market. The job cuts reflect pressures in its traditional automotive sector, while the new partnerships and revenue targets signal a push for long-term growth. The company’s defense division alone could generate €1 billion in sales within the next five years.
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