ZF Friedrichshafen is planning massive job cuts: up to 250,000 euros in severance pay!

ZF Friedrichshafen is planning massive job cuts: up to 250,000 euros in severance pay!

More and more companies in Germany are under pressure given the current economic situation. ZF Friedrichshafen is now the last big name to announce significant job cuts. The company, which has made a name for itself in the field of drive technology, plans to cut up to 14,000 jobs by 2028. This is done as part of a volunteer program that is primarily intended to appeal to long-standing employees who are ready to leave the company. ZF offers high severance payments of up to 250,000 euros in order to encourage employees to volunteer, as Merkur reports.

The affected employees primarily include those from “Division E”, which is involved in the development and production of electric and hybrid drive technologies. In this division alone, a total of 7,600 jobs are to be cut by 2030. The new ZF boss Matthias Miedreich has emphasized that operational dismissals have not been completely ruled out, but will not be considered for part of the workforce, especially in the division at headquarters, until June 30, 2028. Around 4,900 employees are affected here, as Tagesschau reports.

The economic situation

The reason for this massive job cuts also lies in the company's indebted situation. ZF Friedrichshafen, which had a total of 161,631 employees and sales of 41.4 billion euros in 2024, is forced to seek savings of up to 500 million euros, with no further factory closures currently planned in Germany. This restructuring is supported by a majority of IG Metall and the general works council, who are supporting a restructuring plan to preserve the group's drive division.

However, ZF's situation is not unique. The job cuts, which have already affected over 140,000 jobs nationwide, send an alarming signal about the innovative strength and competitiveness of the German industrial sector. Global corporations in particular, such as Bosch, are showing with their latest measures that they have to be prepared for a difficult time, as they are also planning to cut up to 13,000 jobs worldwide, as insm.de reports.

A farewell with severance pay

ZF's voluntary severance program could represent a golden handshake for many affected employees. Anyone who is willing to leave the company can look forward to a high severance payment, which could make living considerably easier during the transition period. This will be particularly attractive for long-term employees who are looking for a good exit after many years with the company.

It remains to be seen how the job cuts at ZF and other companies will affect the regional economy. A further increase in job losses could not only affect the affected employees, but also affect the entire economic landscape in Germany.