ZF to lay off 14K jobs in Germany by 2028 amid strategic restructuring
Date
7/28/2024 7:51:29 AM
(MENAFN) German auto parts manufacturer ZF has announced plans to cut up to 14,000 jobs in Germany by the end of 2028 as part of a strategic restructuring effort aimed at addressing its high debt and positioning itself for the shift to electric mobility. The company, headquartered in Friedrichshafen, disclosed on Friday that the exact number of job cuts at each company site is still being determined. ZF emphasized that, as much as possible, these job reductions will be implemented in a socially responsible manner, taking into account the demographic structure and mobility of its workforce.
ZF, which currently employs 54,000 people in Germany, is also planning to form associations for its smaller-scale sites. The company has been grappling with significant debt, primarily due to its acquisitions of car parts manufacturer TRW and brake specialist Wabco, leading to hundreds of millions of euros in interest payments that have hindered research and development efforts. In response, ZF implemented a stringent austerity program last spring and announced in February that it would cut global spending by around €6 billion over the next two years.
ZF CEO Holger Klein stated in April that the company's workforce in Germany would not remain at its current level, underscoring the need to strengthen competitiveness and solidify ZF's position as a leading global automotive parts supplier. The job cuts and austerity measures are seen as necessary steps to free up resources for the substantial investments required for the transition to electric mobility from 2026 onwards.
The company, which also owns a majority stake in the Zeppelin plant in Friedrichshafen, employs approximately 169,000 people worldwide and operates more than 160 production sites in 31 countries. In 2023, ZF reported sales of around €46.6 billion. Despite the challenges, the company aims to navigate the evolving automotive landscape and emerge as a key player in the electric mobility sector.
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