ZF supplier drops every fourth digit in Germany
ZF Friedrichshafen to eliminate up to 14,000 jobs in Germany over the next four years. The automotive supplier is bundling several German sites.
Automotive supplier ZF intends to fundamentally restructure its German production network. The company announced that German sites will be more efficiently arranged and consolidated into multiple site clusters. The workforce in Germany is expected to shrink from the current 54,000 to between 43,000 and 49,000 employees by 2028.
The job cuts will be "as socially acceptable as possible," according to ZF, by utilizing the demographic structure of the workforce and employee turnover. Some sites may be closed if no long-term perspective can be found for them or their competitiveness cannot be permanently improved, ZF stated.
"The seriousness of the situation demands decisive action to adapt the company to the challenging market and competition environment and fulfill the foundation's mission of securing the future," said CEO Holger Klein. "We want to further strengthen the robust core of ZF. That's why we're working on a more agile business setup to better respond to rapid market changes."
The company's investments in the areas of Commercial Vehicle Technology, Chassis Solutions, Industrial Technology, and Aftermarket will further solidify its position. However, a particular focus lies on the Division Electrified Powertrain Technologies due to intense competition and weak market development for electric vehicles.
The decision to dismantle certain German sites within ZF's automobile industry could potentially impact the local economy. In the pursuit of electromobility, ZF is investing heavily in its Division Electrified Powertrain Technologies, recognizing the need for agility and responsiveness to market changes.
