ZF Friedrichshafen: Up to 250,000 euros in severance pay for 14,000 employees!

ZF Friedrichshafen: Up to 250,000 euros in severance pay for 14,000 employees!

A significant change is underway at ZF Friedrichshafen. The automotive supplier plans to cut up to 14,000 jobs in Germany by 2028, which means a big change for many employees. The company, which is struggling with debts, is relying on a volunteer program to implement the workforce reductions. The severance payments offered to those leaving are not without their benefits: long-term employees can receive up to 250,000 euros, reports Mercury.

The severance pay program is primarily aimed at employees in the so-called Division E, which develops electric and hybrid drives as well as combustion engines. A total of 7,600 jobs will be cut in this division by 2030. For 4,900 employees at ZF's headquarters, operational layoffs are excluded until June 30, 2028, which offers some security. However, Matthias Miedreich, the new ZF boss, emphasized that redundancies for operational reasons cannot be completely ruled out.

The economic situation of ZF

In addition, the company's economic situation is not exactly rosy. ZF most recently recorded sales of 41.4 billion euros in 2024, but is struggling with high debts. In order to overcome the financial challenges, ZF is planning savings of up to 500 million euros, which will not be easy given the current market development. However, the drive division remains unaffected by planned factory closures in Germany, which gives employees some hope that their jobs could be secure in the future.

It seems as if most of the workforce is behind the restructuring plan. A majority of IG Metall and the general works council commented positively on the plans. The company's important locations are in regions such as Lake Constance, Saarbrücken and Schweinfurt, where employees are eagerly following how the situation will develop further.

What does the future hold?

The coming months will be crucial as ZF finalizes its severance program. For the time being, the group continues to offer high severance payments, which are intended to serve as an incentive to make the necessary job cuts in a difficult market environment. The uncertainty remains, even if ZF has a clear perspective for the E division by 2030 and wants to further consolidate the drive division.

Overall, it is clear that ZF Friedrichshafen is facing significant challenges that not only affect the company, but also its employees. The decision to leave voluntarily is certainly not an easy one, but the severance offer could offer many people a new chance at a fresh start. What happens next remains exciting and will keep the workforce busy for a long time.