Massive job cuts - Autozulieferer ZF will Thousands of Jobs cut
At ZF supplier, thousands of jobs are set to be cut in the coming years. The company aims to reduce between 11,000 and 14,000 jobs in Germany by the end of 2028. The exact reductions at the locations have not been specified yet. "There is no alternative", said a company spokesperson. The ZF Works Council announced resistance. "We will fight for every single job", declared ZF Works Council Chairman Achim Dietrich.
Many of the jobs are set to disappear without termination notices. "The reduction should be as socially acceptable as possible, by utilizing the demographic structure of the workforce and natural turnover", the company stated. ZF plans to establish several site partnerships with leaner structures. Currently, 54,000 people are employed by the company in Germany.
Works Council sees "manager failure"
The announcement has raised fears, "where we really need full commitment for customer supply, coping with the recession, and transformation", said ZF Works Council Chairman Dietrich further. The plans diverted attention from manager failure. "The ZF management has decided against the future of sites and thousands of employees in Germany and will face bitter resistance."
The heavily indebted company imposed a strict cost-cutting program in the spring. Worldwide, costs are set to be reduced by approximately six billion Euros this year and the next, it was stated in February. ZF aims to secure a better position to face the transition to e-mobility after 2026.
ZF CEO Holger Klein had already announced in April that the number of employees in Germany was not to be maintained perspectively. "With the measures we are announcing, we want to strengthen our competitiveness and solidify our position as one of the leading global suppliers", he now declared.
High debts burden ZF
The main reason for the cost-cutting measures is the high debts of the company. These mainly originate from the acquisition of auto supplier TRW and brake specialist Wabco. The company currently pays hundreds of millions of Euros in interest - which for example, in the areas of research and development, are lacking. Simultaneously, the automotive supplier, which is mainly owned by the Zeppelin Foundation of the city of Friedrichshafen, must invest billions in the coming years to master the transformation.
Globally, around 169,000 people work for ZF. Around 10,300 people are employed at the Lake Constance site. ZF is represented at over 160 production sites in 31 countries. In 2023, the company achieved a turnover of around 46.6 billion Euros.
- The ZF Works Council in Baden-Württemberg, Germany, expressed concern over the job reductions in the local industry, stating, "We will fight for every single job."
- Despite the job losses at ZF supplier, the company aims to maintain its competitive edge in the German automobile industry, with the CEO declaring, "We want to strengthen our competitiveness and solidify our position as one of the leading global suppliers."
- In light of the job reductions, a supplier in the German automobile industry, ZF, is looking to form partnerships with leaner structures, potentially impacting its relationships with local suppliers.
