ZF Secures Jobs, Drops Division E Sale, Focuses on Restructuring
ZF Friedrichshafen has secured job security and competitiveness with a pact agreed with the works council and IG Metall union. The company will not proceed with the sale of 'Division E', focusing instead on restoring the competitiveness of its existing products in the automotive supply business.
ZF employs nearly 30,000 people worldwide in its drivetrain division, with two-thirds based in Germany. Despite plans to cut around 7,600 jobs in 'Division E' by 2030, the company aims to avoid plant closures and dismissals due to operational reasons in its core business.
The voluntary job cut program, set to begin in mid-October, will rely on measures such as part-time retirement, severance payments, and early retirement. ZF expects to save over 500 million euros by 2027 through comprehensive cost-cutting measures. Meanwhile, the company plans to explore partnerships in specific areas of electrification within 'Division E', without revealing the exact names of the partner companies.
ZF has secured the future of its core passenger car drivetrain business and ruled out the spin-off of 'Division E'. The company will focus on restructuring and partnerships to ensure competitiveness, while supporting employees through voluntary job cuts and savings measures.
