ZF to cut 7,600 jobs in Division E in major restructuring deal
ZF Friedrichshafen AG has reached a landmark agreement with its employee representatives to restructure its Electrified Powertrain Technology division, known as Division E, a plan that will result in 7,600 job cuts by 2030. The deal is part of broader measures aimed at strengthening competitiveness and securing the division’s long-term future.
The agreement, reached following negotiations with the company’s general works council and the IG Metall union, includes measures to reduce costs across the organisation by more than EUR 500 million by 2027. ZF said the plan involves a 7% reduction in working hours, adjustments to collective bargaining components, and company contributions to support the transition.
The company anticipates 7,600 job cuts in Division E by 2030, but emphasised that voluntary programs, transfer measures, and training opportunities will be used.
Division E to remain integral part of ZF
Under the agreement, ZF will not pursue a carve-out of Division E. Instead, the division’s product range will be refocused and selectively developed. Development of certain product lines, including on-board chargers, DC converters, and electric beam axles, will be discontinued, while work on innovations such as the TherMaS thermal management system and the 8HP evo plug-in hybrid transmission will continue. The company will also reassess its procurement strategy for electric motors and inverters in consultation with employee representatives.
ZF CEO Mathias Miedreich said the agreement represents a milestone for the company. “With this alliance, we are breaking new ground in the industry and reaching a milestone for ZF. The aim is to strengthen our position as a leading technological player in the market in the long term and to significantly increase our competitiveness,” he said.
Miedreich acknowledged that achieving these goals would involve “tough cuts” for employees but stressed the importance of collective effort to secure the company’s future.
Barbara Resch, IG Metall Baden-Württemberg district manager and deputy chair of ZF’s supervisory board, said the agreement provides employees with a clear perspective. “On the employees’ side, we have made concessions, that’s true. In return, we expect ZF to position itself as a driver of employment and a guarantor of good working conditions for the future. We will hold ZF accountable to this,” she said.
Achim Dietrich, chairman of the ZF General Works Council, highlighted the importance of preserving the passenger car powertrain segment. “It was crucial for us that the passenger car powertrain – the heart of our company – continues to have a future at ZF and that the carve-out of Division E is off the table,” Dietrich said.