The automotive supplier ZF Friedrichshafen plans to cut thousands of jobs in the coming years. The company says this will be done in a way that is as “socially acceptable” as possible.
The automotive supplier ZF plans to cut up to 14,000 jobs in Germany by the end of 2028. The company announced this in Friedrichshafen. The extent to which reductions are planned at the locations is now being specified.
Automotive supplier ZF talks about restructuring
“The reduction should be carried out in a socially acceptable manner as far as possible, with ZF taking advantage of the demographic structure of the workforce and fluctuation.” ZF is planning to establish several site networks with leaner structures. The company currently employs 54,000 people in Germany.
The heavily indebted company imposed a strict cost-cutting program on itself in the spring. This year and next year, costs worldwide are to be reduced by around six billion euros, it said in February. ZF wants to use this to put itself in a better position to tackle the further transition to e-mobility from 2026.
ZF burdened with high debts
ZF CEO Holger Klein had already announced in April that the number of employees in Germany would not be able to be maintained in the future. “With the measures now decided, we want to strengthen our competitiveness and consolidate our position as one of the world’s leading suppliers,” he explained.
The main reason for the cost-cutting measures is the group’s high level of debt. This is primarily due to 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, the automotive supplier, which is majority owned by the Zeppelin Foundation of the city of Friedrichshafen, will have to invest billions in the coming years in order to master the transformation.
160 production sites in 31 countries
Around 169,000 people work for ZF worldwide. Around 10,300 people are employed 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..
Source: Stern
