BERLIN, July 28: German car parts manufacturer ZF said Friday it would cut up to a quarter of jobs in Germany, as the switch to electric vehicles puts pressure on the sector.
"The number of employees in Germany is to be successively reduced by 11,000 to 14,000 from the current level of around 54,000 by 2028," ZF said in a statement.
The decision to significantly reduce the size of its domestic workforce was needed to "respond to the changes in the mobility sector, particularly in the field of electromobility", ZF said.
"Due to strong competition, cost pressure and weak demand for electric vehicles," the restructuring would focus on ZF's electric motors division, the group said.
At the same time, the Friedrichhafen-based supplier said it would "increase its investments" in the areas of in-car technology, vehicle chassis, industrial tech and aftermarket services.
The move was "difficult but necessary", ZF chief executive Holger Klein said in a statement.
"The seriousness of the situation calls for decisive action to be able to adapt the company to the tougher market and competitive environment," Klein said.
Restructuring the auto supplier in Germany was needed to "strengthen our competitiveness and consolidate our position as one of the world's leading suppliers", Klein said.
ZF's network in Germany would be made "leaner" after recent acquisitions had seen it gradually expand, the group said.
The ultimate extent of the job cuts would depend on "the further development of the markets", ZF said.
The double shock delivered by the end of combustion engines and rising Chinese competition has piled pressure on European suppliers. —AFP
