ZF Friedrichshafen AG has announced plans to reduce its workforce in Germany by 11,000 to 14,000 employees by 2028. This decision is part of a broader restructuring strategy primarily affecting its Electrified Powertrain Technologies division, which faces “strong competition, cost pressure, and weak demand for electric vehicles,” the company stated.
Currently employing around 54,000 people in Germany, ZF’s restructuring will leave between 40,000 and 43,000 employees by the end of the four-year program. The company cited the need to enhance competitiveness and adapt to changes in the mobility sector, particularly in electromobility, as key reasons for the workforce reduction. ZF plans to leverage demographic factors and employee turnover to manage job cuts, including “extensive partial retirement offers” and potentially “severance programs.”
ZF will focus on increasing investments in its Commercial Vehicle Technology, Chassis Solutions, Industrial Technology, and Aftermarket divisions. Conversely, it will implement cost reductions in the Electrified Drive Technologies division due to its underperformance. The company is also reorganizing its location structure, merging various German facilities into a leaner network. Exact details regarding the locations and the number of affected employees are still being finalized.
ZF CEO Holger Klein emphasized the company’s commitment to positioning itself for future competitiveness: “Our corporate responsibility is to position ZF for the future and to further develop our locations in Germany in such a way that they are sustainably competitive and solidly positioned.” He acknowledged the difficulty of the decision, noting the importance of finding the best solutions for all stakeholders.
The realignment comes as ZF grapples with a challenging market for electric vehicles. Stephan von Schuckmann, the board member responsible for the Electrified Powertrain Technologies division, recently announced his retirement. ZF highlighted the competitive pressures and weak demand in the electric vehicle sector, which contribute to “overcapacity in the electric-powertrain production lines.”
Despite the restructuring, ZF remains committed to its electromobility ambitions. “The future belongs to electromobility,” Klein stated. “We have made proactive investments here and will continue to invest heavily in this area.” ZF will also seek to strengthen partnerships and explore cooperation opportunities to navigate the competitive landscape and market shifts.
