Changes in the automotive industry also affect the giant auto parts manufacturer ZF Friedrichshafen. The company plans to cut between 2028 and 11.000 jobs by the end of 14.000. Germany. The concern announced that this is the only way to sustain itself in the future, writes DW.
"We are aware that we have to make difficult but necessary decisions," said ZF CEO Holger Klein. This reduction should be implemented, as far as possible, in a socially acceptable way. "We want to find the best possible solutions for everyone involved," he added. This could, for example, be achieved through early retirement offers, and severance pay programs are also possible. ZF plans to establish several locations with a simpler structure where the production of several types of components will be unified. Reduction in the number of jobs is planned not only in production, but also in the administration and development department.
The word that explains it all is "transformation"
The Workers' Council announced resistance against this measure. "We will fight for every single job," said the president of the ZF works council, Achim Dietrich. The layoff announcement is raising fears "at a time when we really need a total commitment to delivering to customers, overcoming the recession and transformation."
These plans divert attention from management failures, Dietrich said. "ZF management has decided against the future of the sites and thousands of workers in Germany and will face fierce resistance as a result."
According to the company's own data, it currently employs 54.000 people in Germany. The job cuts would affect more than one in four workers. The highly indebted company introduced a strict savings program back in the spring. As it was announced in February, this year and the next year, the costs it has around the world should be reduced by around six billion euros. With this, ZF wants to better position itself in the further transformation towards electric mobility from 2026.
The concern owes billions
The head of ZF management, Holger Klein, announced back in April that the number of employees in Germany will not be able to be maintained at the current level. "With the measures taken now, we want to strengthen our competitiveness and strengthen our position as one of the leading suppliers at the world level," he said.
The main reason for the austerity measures is the high debts of the concern. They were mainly created by the purchase of the TRW company and the brake specialist Vabko. The concern is currently paying hundreds of millions of euros in interest - and that money is missing, for example, in the areas of research and development. At the same time, this auto parts manufacturer, which mostly belongs to the "Zeppelin" foundation of the city of Friedrichshafen, has to invest billions of euros in the coming years in order to overcome the transformation of the industry.
They produce practically everything.
About 169.000 people work for ZF worldwide. About 10.300 workers are employed in the Lake Constance area. ZF is present at more than 160 production locations in 31 countries. Last year, the company generated revenue of around 46,6 billion euros.
The name of the company is actually an abbreviation for "Gear Factory" (Zahnradfabrik). It produces a wide range of auto parts, from passive and active safety systems such as airbags, servo-steering systems or brake systems, through drive technology and chassis to parts for engines and drive systems of special purpose vehicles.
