ZF Announces Major Job Cuts and Restructuring in Electric Drive Division
ZF, a prominent automotive supplier, is poised for significant changes in its drive division. The company is exploring partnerships for the industrialization of individual products and has announced substantial job cuts and cost-saving measures.
By 2030, ZF aims to reduce around 7,600 jobs in its electric drive division, which represents a quarter of global jobs in this area and a third in Germany. This is part of a strategy to save approximately half a billion euros by 2027. The company plans to achieve this mainly through voluntary programs, early retirement, buyouts, and reducing working hours, with operational layoffs to be avoided.
ZF's new CEO, Mathias Miedreich, has warned employees about these harsh cuts. To mitigate costs, the scheduled 3.1% wage increase for April 2026 has been postponed to October 2026, and the annual wage review for non-union employees has been omitted. Additionally, weekly working time for German employees will be reduced by around seven percent by the end of 2027.
ZF has also decided to abandon the planned spin-off of the Electric Drive Division. Instead, it will remain an integral part of ZF and undergo independent restructuring. The drive division will focus on thermal management systems and the successor to the 8HP eight-speed hybrid transmission. Development of on-board chargers, DC converters, and electric solid axles, among other components, will be discontinued.
ZF's strategic shift in its drive division is expected to have significant impacts on employment and operations. The company is seeking partnerships to industrialize individual products and has outlined a path to substantial cost savings and job reductions. The future of the Electric Drive Division, now set to remain within ZF, will be closely watched as the company focuses on core competencies.
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