GERMANY: "A political problem" 14,000 jobs lost! Car supplier ZF is cutting costs!

GERMANY: "A political problem" 14,000 jobs lost! Car supplier ZF is cutting costs!
The automotive supplier ZF is planning to cut thousands of jobs in the coming years. The company plans to cut between 11,000 and 14,000 jobs in Germany by the end of 2028. The exact distribution of the reductions across the locations is currently being finalized. "We believe there is no alternative," said a company spokesman. However, the ZF General Works Council announced resistance. "We will fight for every single job," said ZF Works Council Chairman Achim Dietrich.
Many of the jobs will be eliminated without termination agreements. ZF plans to make the reduction socially acceptable by taking advantage of the demographic structure of the workforce and natural fluctuation. The company also plans to establish several site networks with leaner structures. ZF currently employs 54,000 people in Germany.
Works council sees “managerial failure”
The announcement of the job cuts is fueling fears, "when we actually need full commitment to supplying customers, overcoming the recession and transforming," Dietrich continued. He criticized the plans for distracting from a managerial failure. "The ZF Board of Management has decided against the future of locations and thousands of employees in Germany and will face bitter resistance for doing so."
In the spring, ZF imposed a strict austerity program on itself to reduce the company's high debts. Costs are to be reduced worldwide by around six billion euros in order to cope with the transition to e-mobility from 2026. ZF CEO Holger Klein explained that the measures adopted are intended to strengthen competitiveness and consolidate the position as one of the world's leading suppliers.
High debt burdens ZF
The group's high level of debt is primarily the result of the acquisition of the automotive supplier TRW and the brake specialist Wabco. The group is currently paying hundreds of millions of euros in interest, which is missing in research and development, for example. At the same time, ZF, which is majority owned by the Zeppelin Foundation of the city of Friedrichshafen, will have to invest billions in the coming years to master the transformation to e-mobility.
Around 169,000 people work for ZF worldwide, around 10,300 of them at Lake Constance. ZF is represented at more than 160 production sites in 31 countries. In 2023, the company achieved sales of around 46.6 billion euros.
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Video created in 2024