ZF Schweinfurt relies on job cuts: 1000 jobs at risk!

ZF Schweinfurt relies on job cuts: 1000 jobs at risk!

There is currently worrying news for the workforce at ZF Friedrichshafen AG in Schweinfurt. How in Franconia reports, the company plans to cut almost 1,000 jobs by 2027 as part of a comprehensive package of measures to save a total of 500 million euros. Around 835 jobs in the drive division, also known as Division E, are affected, while a further 130 jobs in other areas will be lost.

As part of the measures, ZF has already agreed on various steps with the general works council and IG Metall. A voluntary program for termination agreements is a central component, as are special offers for partial retirement for employees aged 58 and over. The majority of the workforce will also experience a reduction in weekly working hours of approximately 7 percent by the end of 2027, with the exception of the ZF Aftermarket and ZF Race Engineering divisions.

Details about the package of measures

The 3.1% salary increase, originally scheduled for April 2026, has been postponed to October 2026. Employees without a collective agreement also have the opportunity to convert 2.7% of their wages into time off, while the annual pay review will no longer apply. Termination agreements are offered with severance payments of up to two years' salary, and the special partial retirement offers for Division E employees are expected to be available within the next 3.5 months.

The implementation of the measures began on November 1, 2025 and is scheduled to be completed by February 15, 2026. What is particularly noteworthy is that employees in production are not affected by these cuts. ZF has also agreed to offer support in the development of new career prospects, including internal and external job offers and qualification measures.

Future of ZF Friedrichshafen

Founded in 1915 by Ferdinand von Zeppelin and Alfred von Soden-Fraunhofen in Friedrichshafen, ZF has established itself as one of the most important players in the automotive supply industry. The company is known for its innovative strength, produces a variety of automotive components and invests around 5% of its sales annually in research and development, which already amounted to 3.6 billion euros in 2024 ZF website.

In 2024, ZF reported sales of 41 billion euros and employed around 161,000 people at around 161 locations in more than 30 countries. The challenges caused by the job cuts in Schweinfurt come at a crucial time when the company wants to secure both its ability to innovate and its competitiveness.

The works council chairman emphasized how important it is to reorganize the location and maintain the know-how, even if the workforce is decimated. ZF remains a global leader in powertrain and chassis technologies as well as active and passive safety technologies and recently announced a partnership with Aeva Inc. to produce LIDAR sensors for self-driving vehicles, which is expected to influence the company's future.