ZF announces savings program: Job Cuts and Cost-Cutting Measures

Struggling automotive supplier ZF, based in Friedrichshafen on Lake Constance, has announced a comprehensive cost-saving program for its e-mobility division. The company said on Wednesday that it had reached a restructuring agreement with employees in the E-Division, aiming to save €500 million by 2027.

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In summer 2024, ZF had already announced plans to cut 14,000 jobs by 2028. According to Wednesday’s statement, 7,600 positions in the largest division by revenue and workforce, the E-Division, will be affected by 2030. The company emphasized that “the joint goal remains to avoid layoffs due to operational reasons.”

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In addition to existing measures such as part-time retirement, a severance program will be introduced, complemented by training and transfer opportunities. “ZF supports employees in the affected areas in their professional reorientation,” the company said. To achieve the €500 million savings, a planned 3.1% salary increase scheduled for April 2026 will be postponed to October, and weekly working hours in the e-mobility sector will be reduced by about seven percent until the end of 2027.

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ZF CEO Mathias Miedreich described the partnership with employees as a “milestone,” adding that the goal is to “strengthen our position as a technologically leading top player in the market in the long term and significantly increase our competitiveness.” He acknowledged that this path involves “difficult measures for our employees” and stressed the importance of navigating these challenging times together for the company’s benefit.

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Barbara Resch, district head of IG Metall Baden-Württemberg and deputy chairwoman of ZF’s supervisory board, said the agreement “creates a clear perspective. As employees, we made concessions, but in return, we now expect ZF to remain a strong employer and ensure good working conditions for the future.”

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ZF also stressed that it does not intend to spin off the e-mobility division, a possibility that CEO Miedreich had not ruled out as recently as mid-September. The manager officially assumed his role on Wednesday after the supervisory board’s September decision, following a July postponement of key decisions regarding the E-Division.

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