ZF Friedrichshafen under pressure: jobs at risk!

ZF Friedrichshafen under pressure: jobs at risk!

It's not easy for ZF Friedrichshafen. The technology group, which is based in Friedrichshafen, is struggling with a significant drop in sales. Last year the numbers were sobering, and current reports from the first half of 2025 show only marginal improvement. ZF is heavily indebted, not least due to several billion-dollar takeovers made in the past. With sales of 41.4 billion euros in 2024, it is obvious that the group, which has one of the largest shares in the world in the areas of drive and chassis technology as well as safety solutions, is in a critical situation.

An austerity program is underway that could cost up to 14,000 jobs in Germany from 2025 to 2028. An uncertain future is emerging for the central drive division, which is to be outsourced but not sold. This has led to a wave of protests and demonstrations among the workforce. IG Metall Baden-Württemberg has now discussed state aid and temporary state participation, which car expert Ferdinand Dudenhöffer sees as problematic. He sees this as a capitulation and warns that state aid without approval from Brussels is unimaginable.

The history of ZF and current challenges

ZF Friedrichshafen is a magical 110 years old. The company was founded in 1915 under the name Zahnradfabrik Friedrichshafen by Count Ferdinand von Zeppelin. The company originally manufactured gears for Zeppelins and has since developed into one of the world's leading automotive suppliers. ZF has always had a good knack for adapting to changes in the market, but the current transformation to electromobility is a significant challenge.

ZF has repeatedly acted as a driving force for innovation: from the patent application for the Soden six-speed transmission to the introduction of one of the first 9-speed automatic transmissions. Despite these successes, there are now considerations about closing further German locations, including the Eitorf plant, which could close by the end of 2027. Dudenhöffer recommends considering other options, such as partnerships to increase efficiency, instead of state aid - such as the existing cooperation with Foxconn in axle assembly, which could bring a breath of fresh air into the matter.

Worldwide presence and research

Despite all the difficulties, ZF's global presence remains remarkable. Around 161,600 employees work at 168 locations in 32 countries. The group invests around five percent of its sales, around 3.6 billion euros, in research and development every year. This is a big plus in the current market landscape where technological innovation is the key to survival. Many speak of ZF as a strong player in the automotive industry that not only advances driving safety, but also drive technologies.

Under these circumstances, it remains to be seen how the situation will develop and whether ZF Friedrichshafen will set the right course in order to both preserve its tradition and respond to the challenges of the future. The next few years will be crucial – for the workforce, the region and the group as a whole.