ZF Group to cut 7,600 jobs in powertrain unit by 2030

ZF Friedrichshafen will cut 7,600 jobs in its electrified powertrain technology division by 2030 as part of a restructuring agreement with its works council and German labour union IG Metall, the company said on Wednesday, Reuters reported.

The cuts amount to about a quarter of the workforce in the powertrain unit, which employs roughly 30,000 people producing electric, hybrid and conventional drive systems.

Under the agreement, ZF said the measures will include early retirement, severance packages and retraining opportunities. The company committed to avoiding forced redundancies.

ZF also said the job reductions will be accompanied by shorter working hours and a delayed wage increase. Weekly working hours at German sites in the powertrain division will fall by around 7 per cent until 2027, while a planned 3.1 per cent wage rise will be postponed from April to October 2026, Reuters reported.

These steps are expected to reduce costs by more than €500 million ($536 million) by 2027. ZF confirmed the powertrain unit would remain in-house after dropping earlier plans to spin it off.

The announcement coincided with Mathias Miedreich taking over as chief executive following the early departure of Holger Klein. Miedreich said the agreement marked “hard cuts” for employees but was necessary to secure the division’s future, according to Reuters.

The plan is part of a wider restructuring announced by ZF last year to eliminate up to 14,000 jobs in Germany, Reuters reported. The company has been weighed down by weak demand for electric vehicles, trade tensions and debt linked to past acquisitions.

ZF workers staged protests in recent months against potential layoffs. The announcement follows Bosch’s decision last week to cut 13,000 jobs, underscoring pressure on German suppliers.

The German auto industry association VDA said around 55,000 jobs have been cut across the country’s automotive sector since 2023, with suppliers accounting for the largest share.

Achim Dietrich, chair of ZF’s works council, said the deal demonstrated confidence in “Made in Germany” technologies.

Barbara Resch, representing IG Metall, said workers had made concessions under the agreement and expected ZF to continue to act as a “job engine” with fair employment conditions.

The company said it would support affected employees through retraining programmes and redeployment where possible.

According to Reuters, the restructuring aims to stabilise ZF’s powertrain operations while reducing structural costs. The company said the agreement secures jobs in Germany and positions the division to respond to the challenges facing the automotive industry.