8/5/2024 Markets & Industries Report

ZF plans to cut up to 14,000 jobs in Germany

ZF Friedrichshafen AG is adapting its structures in order to become more competitive and to meet the changes in the mobility sector, particularly with regard to electromobility. The company intends to increase investments in the Commercial Vehicle Technology, Chassis Solutions, Industrial Technology and Aftermarket divisions. The German locations are to be organized more efficiently and merged into several location networks. The company intends to reduce the number of employees as a result.

"Our corporate responsibility is to make ZF fit for the future and to further develop the locations in Germany in such a way that they are sustainably competitive and solidly positioned. We are aware that we also have to make difficult but necessary decisions to achieve this. We want to find the best possible solutions for everyone involved," says ZF CEO Dr. Holger Klein.

Future strategy through collective agreement

With the necessary consolidation of locations in Germany now planned, the company is continuing the basic idea of the Transformation collective agreement concluded in 2020. The aim is to make the locations more competitive and flexible and to consistently align personnel planning with expected demand. In addition, the focus will be on products that secure the locations in the long term. If the strategy does not bring the hoped-for success, restructuring or closure is also possible.

New structures, fewer employees

At the same time, the company will adjust its capacities to the expected continued weaker market demand. As a result of the new site network structure in Germany and the simultaneous adjustment of capacities in both production and administrative areas as well as in research and development, the number of employees in Germany is to be gradually reduced by 11,000 to 14,000 by 2028 from the current level of around 54,000. This will depend on the further development of the markets and the general conditions at the respective location.

"The future belongs to electromobility"

One focus of the strategic realignment is on the Electrified Drive Technologies division. "Despite the current market situation, one thing is clear: the future belongs to electromobility. We have made advance investments here and will continue to invest heavily in this area," explains ZF CEO Klein. "The seriousness of the situation calls for decisive action in order to adapt the company to the tougher market and competitive environment and to fulfill the foundation's mission of securing the future," emphasizes Klein.