Schaeffler cuts 2,660 German jobs: 2 deadlines for Blue Card holders

Schaeffler, a big supplier to Volkswagen and BMW, announced on 3 November 2026 that it will cut 3,460 jobs in Europe. In Germany, 2,660 jobs go by 2028. If you're an Indian engineer at a German car supplier, a layoff can put your right to stay at risk, as well as your salary. Here is what German auto supplier layoffs mean for your Blue Card (the residence permit for skilled workers from outside the EU).

Our earlier post covered SUSE's 190 job cuts and what Blue Card holders should do. That was a software company. This one hits factories and labs, and the numbers are much bigger.

What exactly did Schaeffler announce?

The 2,660 German cuts are about 9% of its core German workforce. Production takes half of the cuts. Research and development (R&D) takes 30%, which is about 800 jobs. Administration takes 20%.

Four German sites will close completely:

• Dortmund: 430 employees
• Morbach: 160 employees
• Berlin: 270 employees (operations discontinued)
• Schwalbach: 385 employees (some staff move to Frankfurt)

An announcement is not a termination letter. If you work there, you may not get a letter at all. But it's smart to know the steps below before any letter comes.

Is this only a Schaeffler problem?

No. The whole supplier chain is shrinking. Demand for combustion engines is weak, the switch to electric cars is slower than planned, and staff costs in Germany are high.

Bosch plans 13,000 cuts, ZF Friedrichshafen up to 14,000 and Continental over 7,000. Volkswagen itself is planning plant closures. See also our post on how VW's pay freeze could put a Blue Card at risk.

What does the Kündigungsschutzgesetz give you?

The Kündigungsschutzgesetz (KSchG) is the German law against unfair dismissal. Its most important part is a short deadline.

You have exactly three weeks from the day the paper termination letter reaches your mailbox. In that time you must file a Kündigungsschutzklage (an unfair dismissal claim) at the labour court. If you miss the date, the dismissal is valid, even if your employer made mistakes.

In a mass layoff, your lawyer will check the Soziale Auswahl (social selection). This means the employer must choose fairly who leaves. Our post on the 3-week rule explains the deadline in more detail.

Do you get severance pay?

Not automatically. German law has no general right to severance pay (Abfindung). Usually it comes from a settlement, where the employer pays you so that you don't sue.

The usual starting point is 0.5 months of gross salary (your pay before tax) for each year you worked there. Here is an example. You earn EUR 5,000 gross a month and worked 8 years. Half a month times 8 years is 4 months, so about EUR 20,000 as a starting offer. If the employer's reasons for dismissal look weak, you can ask for more.

What happens to your Blue Card after auto supplier layoffs?

Your Blue Card does not end on your last working day. The rule is in § 18 Abs. 5 AufenthG (updated in July 2026). The Ausländerbehörde (immigration office) must give you at least six months after your job ends to find a new one.

The EU Blue Card rules add another protection. The office can't withdraw your card for up to three months of unemployment if you held it for under two years. If you held it for more than two years, the limit is six months. These figures differ from the six months above, so ask your Ausländerbehörde or a lawyer which one applies to you.

The big risk is a missed notice. Here are the deadlines side by side.

Don't wait for your employer to do their part. Your two-week deadline is shorter than theirs.

What should you do if you get a letter?

1. Don't sign straight away. If you get an Aufhebungsvertrag (a termination agreement), take it home. Signing may remove your right to sue for severance. It can also block your unemployment benefit (ALG I).
2. Write down the date. Note the exact day the letter arrived in your mailbox.
3. Tell the authorities. Report the job loss to the Agentur für Arbeit (Federal Employment Agency) right away. Then tell your local Ausländerbehörde within two weeks, using its official portal or email.
4. Call a lawyer. A Fachanwalt für Arbeitsrecht (employment law specialist) can check the social selection and negotiate your severance.

You can read official guidance from the Hamburg Welcome Center. For the residence rules, see this summary of the Residence Act duties. This article is general information, not legal advice.

My advice: put two reminders in your phone the day any letter arrives. One for day 14 (Ausländerbehörde) and one for day 21 (court claim). A missed date is the easiest way to lose your rights in Germany.