US EditionZF Friedrichshafen Restructures Amid German Auto Sector Turmoil
ZF Friedrichshafen will reduce costs by over €500 million by 2027 with job cuts, early retirements, and retraining in its electrified powertrain unit, affecting 25% of staff.
- ZF Friedrichshafen revealed plans to eliminate roughly 7,600 jobs by 2030 within its division focused on electric powertrain systems, while choosing to retain this business segment internally.
- The restructuring agreement with IG Metall and the works council comes after prolonged worker demonstrations amid subdued demand for electric vehicles and ongoing international trade challenges.
- The agreement entails reducing weekly working hours by approximately 7%, delaying scheduled wage increases, offering early retirement and retraining opportunities, and aims to achieve cost savings exceeding 500 million euros by the year 2027.
- New CEO Mathias Miedreich characterized the agreement as a way to innovate within the sector and recognized the difficult reductions impacting staff, while Achim Dietrich, head of the works council, viewed it as an expression of trust in German engineering.
- ZF’s restructuring reflects broader challenges, as Germany’s auto sector lost around 55,000 jobs since 2023 and suppliers like Bosch announced cuts, but ZF pledged to support workers with fair conditions and role transitions.
32 Articles
32 Articles
German automotive supplier ZF Friedrichshafen will cut around 7,600 jobs in its electrified powertrain division by 2030. The decision affects Germany only and is part of a restructuring agreement reached with unions. The total number of job cuts corresponds to around a quarter of the division's jobs and seven percent of ZF's total workforce in Germany.
Germany's second largest car supplier ZF is deeply in the debt crisis. The Friedrichshafen company no longer wants to separate itself from its drive division "Division E". However, austerity measures are decided. Thousands of employees are affected.
On his first day at work, new CEO Miedreich detailed the cost-cutting plans for ZF Friedrichshafen. The spin-off of the drivetrain division, considered the heart of the group, is off the table.
7600 jobs will be lost there by 2030. In order to reduce costs, working hours for parts of the workforce will be reduced and a tariff increase will be postponed.
leprogres.fr
New signal of tensions in the sector, the German automotive equipment ZF announced this Wednesday cuts in the strength of one of its divisions.
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