Financial expert analyzes: ZF is planning 12,000 job cuts in Germany - effects of the electric transition in the automotive industry.

Financial expert analyzes: ZF is planning 12,000 job cuts in Germany - effects of the electric transition in the automotive industry.

According to a report from www.capital.de, the automotive supplier ZF Friedrichshafen plans to cut around 12,000 jobs in Germany. This corresponds to around a quarter of all the company's jobs in Germany. The reason for these massive job cuts lies in the company's incorrect assessment of the electric transition in the industry as well as in the high debts that arose from the takeovers of TRW and Wabco.

The planned job cuts could have a significant impact on the market and the financial sector. The cost pressure will particularly affect other automotive suppliers, which are also undergoing change. According to forecasts from Alixpartners, suppliers will also feel immense cost pressure in the coming months and years. Furthermore, the case of ZF shows that the structural challenge of coping with the cost pressure of change is not abstract but real.

ZF's high level of debt raises the question of whether other companies in the industry that have made similar strategic decisions will also face financial challenges. The difficulties that ZF is having in implementing the transformation process due to debt and slow progress in its core business could serve as a warning signal to other companies.

The planned job cuts at ZF are also likely to have an impact on the region and the company's foundation companies, as ZF is a significant employer. The example of ZF shows how a company's economic decisions can have far-reaching consequences for the region, its employees and its owners. As www.capital.de reports, the German automotive supplier industry as a whole is considered to be under pressure from international suppliers. It also becomes clear that German suppliers could well lose their position in the top 10 on the market.