Financial expert warns of impending job cuts at ZF: 12,000 jobs threatened, high level of debt as a reason. Companies in crisis.

Financial expert warns of impending job cuts at ZF: 12,000 jobs threatened, high level of debt as a reason. Companies in crisis.

According to a report by www.faz.net, the works councils of the automotive supplier ZF fear massive job cuts in Germany. There is talk of at least 12,000 jobs being affected, of which 10,000 could be lost by 2028. This could have a major impact on the market and the financial industry.

Global car production has fallen since 2018, which also affects suppliers such as ZF. The company also plans to close plants in Gelsenkirchen and Eitorf. Part of the job cuts will be accomplished through retirement regulations and fluctuation.

The works council attributes the job cuts to ZF's high level of debt. As of the first half of 2023, the company was in debt to the tune of over eleven billion euros, mainly due to company acquisitions. Due to increased interest rates, the debt burden is becoming more and more expensive, which is putting a strain on the company's cash register.

In order to raise money, ZF plans to sell its airbag division, which at the time had around 35,000 employees. The possibility of an IPO is also being prepared at the same time.

These measures could have an impact on the market, as job cuts and the sale of company divisions could unsettle investors and weaken confidence in the company. In addition, increased availability of workers could intensify competition in the industry.

The financial industry will keep an eye on ZF's debt issues as the company's financial instability could potentially impact its creditworthiness and interest rates.

Overall, ZF's planned actions show that the company is in a serious financial situation and may need to take drastic steps to stabilize and remain competitive in the long term. These developments are of great relevance for the market and the financial industry.