ZF before major restructuring: 14,000 jobs are to be dismantled!

ZF before major restructuring: 14,000 jobs are to be dismantled!

Deutschland - The automotive supplier ZF does not come to rest. According to the current reports of Schwäbische.de , a deep red loss of 1.02 billion euros was recorded in 2023. This marks a dramatic step backwards compared to a profit of 126 million euros in the previous year. The causes are diverse, including one -off effects for taxes and depreciation as well as high provisions of around 600 million euros for renovation costs.

The company's turnover fell by 11 % to 41.4 billion euros, which pressed the adjusted EBIT margin from 5.1 % to 3.6 %. In a tense economic situation, debt has increased again to over 10 billion euros. ZF is now pursuing a strategic plan for debt relief and wants to develop into an agile, more profitable technology leader.

job cuts as a strategic measure

A central component of the renovation is to reduce jobs. ZF plans to break down up to 14,000 jobs in Germany to meet the challenges of the industry. Around 4,000 jobs were reduced as early as 2023, especially due to partial retirement and fluctuation. The number of employees fell by 4 % worldwide by the end of 2024 to around 161,631, while in Germany the number fell to around 52,000. The participation of success for collective staff in Germany is suspended for 2024, which underlines the precarious situation of the company.

Also challenging remains the market development, since customers such as Volkswagen, Mercedes-Benz and BMW also report profits. In view of the weak economy and the low demand for electric vehicles, ZF is forced to rethink its strategy.

investments and strategic partnerships

The focus is now on the core areas such as chassis, commercial vehicle and industrial technology as well as the aftermarket business. ZF plans to invest in future technologies, including a joint venture with Foxconn to secure competitive advantages. Nevertheless, there are no plans for splitting down or selling the electric division; Instead, the company focuses on partnerships and the promotion of plug-in hybrid drives.

for 2025, ZF expects stable sales of over 40 billion euros and an adjusted EBIT margin between 3.0 % and 4.0 %. However, these optimistic forecasts are in the context of persistent geopolitical and protectionist uncertainties that could endanger business.

transformation of the automotive industry

The challenges of the industry are not new and reflect the extensive change processes that affect the entire automotive industry. According to Ey , the industry is faced with megatrends such as connectivity, autonomous driving and sustainability. Digital technologies, data and software are crucial for new products and business models. Change is not only shaped by new technologies, but also by changing customer behavior and tightened regulation.

In a changing mobility ecosystem, companies like ZF have to rethink their value chains and reposition themselves. Software-defined vehicles are increasingly playing a central role and changing the automobile into a complex mobility service provider. This transformation is also accelerated by new players from various industries that bring innovative business models into the automotive ecosystem.

With these developments in view, ZF is required to reorient itself and develop sustainable solutions in order to exist in the competitive market. The next few months could decide how successfully the group emerges from this deep crisis.