ZF Hungária Announces Significant Job Cuts Amid Declining Orders
The automotive parts manufacturer in Eger will lay off approximately 110 employees due to a downturn in the European automotive market.
ZF Hungária Ipari és Kereskedelmi Kft., a subsidiary of ZF Friedrichshafen, plans to reduce its workforce in Eger by approximately 110 employees, according to a report by 24.hu.
This follows a previous round of layoffs in 2023, in which the company terminated 60 employees, representing 3.5% of its workforce.
The company cites significant declines in the European automotive market and a decrease in customer orders as the primary factors behind the latest layoffs.
The parent company, ZF Friedrichshafen, is recognized as the fourth-largest automotive supplier worldwide, with a core focus on manufacturing transmissions for both commercial vehicles and passenger cars.
Its products are utilized by numerous automotive manufacturers, including Mercedes, BMW, Opel, Peugeot, and Fiat.
The current layoffs are expected to affect positions primarily within assembly, machine operation, and logistics.
Current forecasts suggest that further reductions in order volumes are anticipated, which may impact an additional 50 employees in the first quarter of 2025. However, outside of these anticipated cuts, additional layoffs have not been planned at this time.
In 2023, ZF Hungária reported a 21% increase in revenue, achieving 304 billion HUF, and increased its personnel expenditures by 30%.
Despite these figures, the outlook for 2024 indicates a potential decrease in revenue as the automotive sector continues to experience challenges.
By the end of 2023, the workforce had already reduced from 1,866 to 1,790 employees, and the upcoming layoffs will further diminish this number.
The report also mentions that other significant domestic automotive suppliers in Hungary are experiencing ongoing layoffs, although these may not be disclosed publicly due to regulations concerning group layoffs.
Zoltán László, deputy chairman of the Vasas Trade Union Association, indicated that several automotive suppliers are opting for gradual cuts, terminating an average of 25-28 employees monthly to avoid classification as group layoffs.
The Eger facility, established in 1995, is part of a manufacturing legacy that previously hosted Csepel Autógyár. ZF’s operations include the production and sales of manual, automated, and automatic transmissions, along with their components.
This follows a previous round of layoffs in 2023, in which the company terminated 60 employees, representing 3.5% of its workforce.
The company cites significant declines in the European automotive market and a decrease in customer orders as the primary factors behind the latest layoffs.
The parent company, ZF Friedrichshafen, is recognized as the fourth-largest automotive supplier worldwide, with a core focus on manufacturing transmissions for both commercial vehicles and passenger cars.
Its products are utilized by numerous automotive manufacturers, including Mercedes, BMW, Opel, Peugeot, and Fiat.
The current layoffs are expected to affect positions primarily within assembly, machine operation, and logistics.
Current forecasts suggest that further reductions in order volumes are anticipated, which may impact an additional 50 employees in the first quarter of 2025. However, outside of these anticipated cuts, additional layoffs have not been planned at this time.
In 2023, ZF Hungária reported a 21% increase in revenue, achieving 304 billion HUF, and increased its personnel expenditures by 30%.
Despite these figures, the outlook for 2024 indicates a potential decrease in revenue as the automotive sector continues to experience challenges.
By the end of 2023, the workforce had already reduced from 1,866 to 1,790 employees, and the upcoming layoffs will further diminish this number.
The report also mentions that other significant domestic automotive suppliers in Hungary are experiencing ongoing layoffs, although these may not be disclosed publicly due to regulations concerning group layoffs.
Zoltán László, deputy chairman of the Vasas Trade Union Association, indicated that several automotive suppliers are opting for gradual cuts, terminating an average of 25-28 employees monthly to avoid classification as group layoffs.
The Eger facility, established in 1995, is part of a manufacturing legacy that previously hosted Csepel Autógyár. ZF’s operations include the production and sales of manual, automated, and automatic transmissions, along with their components.
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