ZF Friedrichshafen shocked: 7,600 jobs in the electrical division affected!

ZF Friedrichshafen shocked: 7,600 jobs in the electrical division affected!

Things are getting restless in Bavarian cities, especially in Schweinfurt: The automotive supplier ZF Friedrichshafen recently announced drastic job cuts that will cost around 7,600 jobs in the electrical division by 2030. The latest news comes directly from the top of the company: Mathias Miedreich took over as the new ZF boss on October 1, 2025 and presented an agreement with the works council and IG Metall on the future of Division E, which consists of around 30,000 employees and represents the company's largest business area.

The Schweinfurt location plays a central role with its 5,900 employees in electromobility. While the electrical division remains intact, the signs point to cost reductions. The goal is to save over 500 million euros by 2027. The measures include postponing a planned 3.1% wage increase to October 2026 and reducing weekly working hours by approximately 7% to 32.5 hours, which will have a negative impact on employees' salaries.

A difficult market and necessary adjustments

The reasons for this intensive savings plan are varied. ZF faces a dramatic decline in car production; Since 2018, production has fallen by 30%, which has a significant impact on the order situation for key customers such as Volkswagen, BMW and Stellantis. Reports show that sales of electric cars are progressing more slowly than originally hoped, which is leading to a tense market situation in the electromobility sector.

In order to avoid redundancies for operational reasons, ZF plans to reduce jobs through volunteer programs, partial retirement and a new severance pay program. A decision on the future production of electric motors in Schweinfurt should also be made by the end of March 2026; It remains to be seen whether these will continue to be manufactured in-house or purchased in the future. Overall, it is feared that up to 14,000 jobs will be cut in the next three years.

Electromobility in transition

Electromobility, on the other hand, presents itself as a tranquil field. Estimates show that there will already be around 1.7 million electric cars on the roads in Germany at the beginning of 2024, although the increase this year was only 17% - a significant drop compared to previous years. Statista points out that the new EU directive from 2023

stipulates that no new petrol and diesel cars will be allowed to be registered from 2035, which will increase the pressure on the industry. As manufacturers try to adapt to the new requirements, it remains to be seen how the market will continue to develop.

The situation at ZF reflects the challenges facing the entire automotive industry. The transition to electric mobility continues to be a rollercoaster ride, and the landmark decisions on job cuts and restructuring will be crucial for the future of the company and its employees. In times like these, it is important to approach the strategy with a good hand in order to successfully master the challenges of the market.