ZF, a major player in the automotive industry, plans to reduce its workforce in Germany by up to 14,000 jobs over the next four years. This move is part of a restructuring programme aimed at increasing competitiveness and addressing changes in the mobility sector, particularly electromobility. By the end of the restructuring, ZF’s German workforce, currently around 54,000, could drop to between 40,000 and 43,000 employees.
The job cuts will be facilitated through demographic considerations and employee turnover, with offers for partial retirement and possible severance programmes. ZF’s strategy, termed ‘Strengthening strengths,’ involves boosting investments in Commercial Vehicle Technology, Chassis Solutions, Industrial Technology, and Aftermarket divisions, while cutting costs in the less profitable Electrified Drive Technologies division.
In previous years, ZF expanded its operations with significant acquisitions, such as TRW in 2015 and Wabco in 2020. The current restructuring will merge these locations into a streamlined network, although specific locations and the number of affected employees have not been disclosed. The company emphasized that this transformation aims to create a sustainable and leaner location network structure.
ZF CEO Holger Klein stated, “Our corporate responsibility is to position ZF for the future and to further develop our locations in Germany to be sustainably competitive. We are aware of the difficult decisions necessary to achieve this and strive to find the best solutions for everyone involved.”
The Electrified Powertrain Technologies division, although facing challenges, remains a key focus. Despite the competitive market and cost pressures, ZF continues to invest in electromobility. Klein added, “The future belongs to electromobility. We have made proactive investments and will continue to invest heavily in this area, exploring cooperation and partnerships to advance electric mobility.”
This strategic realignment reflects ZF’s commitment to adapting to the evolving automotive landscape while maintaining a strong focus on sustainable and competitive growth.
