ZF Friedrichshafen has reached an agreement with employee representatives on a restructuring plan for its Electrified Drive Technologies division, ruling out site closures or a sale for now but confirming deep personnel cuts.
The “restructuring alliance” will see the struggling division remain part of ZF after management had considered alternatives ranging from a sale to winding it down. However, the company said 7,600 jobs will be cut in Division E by 2030, mainly through attrition and severance programmes, while working hours and benefits will also be reduced.
See also: ZF Names Mathias Miedreich as CEO Amid Restructuring, Klein and Laier to Depart
“This joint effort provides comprehensive measures to strengthen competitiveness, coupled with a consistent orientation of the product range and a transparent new path toward possible partial partnerships (‘ecosystem’),” ZF said.
CEO Matthias Miedreich, who took over on Oct. 1, described the agreement as a turning point. “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. “We are aware that the path to this goal will involve tough cuts for our employees. Now it is time to work together to overcome these difficult times for the good of the company. With this alliance, we have set the right course.”
See also: ZF LIFETEC Unveils Transformable Steering Wheel for Automated Driving Era
The company said unprofitable products such as on-board chargers, DC converters and electric beam axles will be discontinued, while development will continue for thermal management systems and hybrid transmissions. The sourcing of electric motors and inverters will also be reassessed, a move that could affect jobs at Schweinfurt and Auerbach.
Barbara Resch, district manager of IG Metall Baden-Württemberg and deputy chairwoman of ZF’s supervisory board, said: “With this alliance, we have succeeded in creating 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.”
See also: ZF Brings Video Game-Style Tuning to Real Cars With Updated cubiX Software
General Works Council chairman Achim Dietrich said workers had secured key protections. “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,” he said. “We also see this alliance as a signal beyond ZF that technologies and products ‘Made in Germany’ have good prospects.”
The restructuring of Division E is part of ZF’s broader plan to cut 14,000 jobs across Germany. Half of those reductions will come from the electrified powertrain unit, which the company said has been hit by overcapacity and unprofitable contracts.
