ZF Hungária to Lay Off 110 Employees Amid Market Challenges
The automotive parts manufacturer in Eger cites difficult market conditions as the reason behind the layoffs, following a previous reduction in workforce.
ZF Hungária Ipari és Kereskedelmi Kft., the automotive parts manufacturing subsidiary of Germany's ZF Friedrichshafen, has announced plans to lay off up to 110 employees at its facility in Eger, Hungary.
This decision follows a previous reduction last year, when the company laid off 60 employees as part of a group workforce reduction program.
The layoffs are attributed to challenging market conditions in the automotive industry.
In the previous year's layoffs, the reduction represented 3.5 percent of the total workforce.
The latest announcements indicate that an additional 50 employees are expected to be dismissed in the near future.
The affected positions will primarily include assembly operators, machine operators, and logistics operators.
ZF Hungária has operated in Eger since 1995, taking over a facility that was previously home to Csepel Autógyár. As one of the world's largest automotive suppliers, ZF Friedrichshafen serves major automotive brands, including BMW, Mercedes, and Opel.
In 2023, ZF Hungária reported a revenue increase of 21 percent, reaching 304 billion forints.
Additionally, the company increased its personnel expenses by 30 percent during the year and employed nearly 1,900 staff members in the second half of 2023.
However, as the automotive industry anticipates a downturn in 2024, ZF Hungária has reported a decrease in revenue and demand.
The company stated that it evaluated its workforce capacity and determined that it could not sustain the current number of employees, prompting the decision for layoffs.
The reduction in workforce began in late 2023, with employee numbers decreasing from 1,866 to 1,790 over the course of 2024.
According to Hungarian labor law, employers are required to report group layoffs to the National Employment Service (NFSZ), making such announcements public.
The legal criteria defining group layoffs are specified in the Labour Code.
László Zoltán, vice president of the Vasas Trade Union Federation, noted that many companies in the automotive sector are implementing layoffs.
He pointed out that some suppliers deliberately dismiss small groups of about 25 to 28 employees monthly, avoiding classification as group layoffs, although the reductions are ongoing.
This decision follows a previous reduction last year, when the company laid off 60 employees as part of a group workforce reduction program.
The layoffs are attributed to challenging market conditions in the automotive industry.
In the previous year's layoffs, the reduction represented 3.5 percent of the total workforce.
The latest announcements indicate that an additional 50 employees are expected to be dismissed in the near future.
The affected positions will primarily include assembly operators, machine operators, and logistics operators.
ZF Hungária has operated in Eger since 1995, taking over a facility that was previously home to Csepel Autógyár. As one of the world's largest automotive suppliers, ZF Friedrichshafen serves major automotive brands, including BMW, Mercedes, and Opel.
In 2023, ZF Hungária reported a revenue increase of 21 percent, reaching 304 billion forints.
Additionally, the company increased its personnel expenses by 30 percent during the year and employed nearly 1,900 staff members in the second half of 2023.
However, as the automotive industry anticipates a downturn in 2024, ZF Hungária has reported a decrease in revenue and demand.
The company stated that it evaluated its workforce capacity and determined that it could not sustain the current number of employees, prompting the decision for layoffs.
The reduction in workforce began in late 2023, with employee numbers decreasing from 1,866 to 1,790 over the course of 2024.
According to Hungarian labor law, employers are required to report group layoffs to the National Employment Service (NFSZ), making such announcements public.
The legal criteria defining group layoffs are specified in the Labour Code.
László Zoltán, vice president of the Vasas Trade Union Federation, noted that many companies in the automotive sector are implementing layoffs.
He pointed out that some suppliers deliberately dismiss small groups of about 25 to 28 employees monthly, avoiding classification as group layoffs, although the reductions are ongoing.
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