BERLIN -- The German supplier industry is on the brink of massive job cuts as a weak economy, high inflation and the move to electrification create the need for savings.
ZF Friedrichshafen, Robert Bosch and Continental are among the country's suppliers looking a staff reductions as the auto industry's rapid transformation to EVs and software-led vehicles increases costs.
ZF, which is highly indebted, could ax up to 12,000 jobs in Germany by 2030, according the supplier's labor representatives.
The supplier is considering a hiring freeze in Germany and moving work to countries with significantly lower wage costs, its works council chairman, Achim Dietrich, told the German media as workers held a protest against job cuts at the company's headquarters in Friedrichshafen, Germany.
Labor representatives fear the highly indebted supplier wants to cut one in four jobs in Germany by 2030, Automotive News Europe sister publication Automobilwoche reported.
A ZF spokesperson said the works council's fears were based on "extreme scenarios" and "outdated assumptions." Chief Human Resources Officer Lea Corzilius said ZF "continues to invest heavily in its German locations."