Massive job cuts - Supplier ZF will cut Thousands of Jobs
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 chief Achim Dietrich.
Many of the jobs are expected to disappear without termination notices. "The reduction should be as socially acceptable as possible, by utilizing the demographic structure of the workforce and employee turnover", the company stated. ZF plans to establish several site clusters with leaner structures. Currently, 54,000 people are employed in Germany by the company.
Works council sees "manager failure"
The announcement is causing concerns, "where we really need full commitment for customer supply, coping with the recession, and transformation", said ZF works council chief Dietrich further. The plans diverted attention from manager failure. "The ZF board of 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 expected 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 consolidate 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 corporation. These primarily 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 supplier, which is mostly owned by the Zeppelin Foundation of the city of Friedrichshafen, will have to 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 job reductions at ZF, a prominent supplier in the German automobile industry based in Baden-Württemberg, are set to impact numerous workers in the coming years.
- Despite the resistance from the ZF Work Council, led by Achim Dietrich, the company aims to reduce between 11,000 and 14,000 jobs in Germany, affecting various industries within the country.
- The high debts of ZF, primarily derived from acquisitions such as TRW and Wabco, have compelled the company to implement a stringent cost-cutting program, impacting both its domestic and international operations, including its supplier network in Germany.
