ZF Saarbrücken: Restructuring plan with up to 250,000 euros in severance pay!

ZF Saarbrücken: Restructuring plan with up to 250,000 euros in severance pay!

Many companies today are facing major challenges, including ZF Friedrichshafen. The renowned automotive supplier recently presented a comprehensive restructuring plan that is intended to set the course for the future. The plan is not only strategic, but also personal: Employees who leave voluntarily are offered an incentive with severance payments of up to 250,000 euros. IT Boltwise reports that ZF plans to save more than 500 million euros by 2027 in order to be able to sustainably exist on the market.

Originally, 2,800 jobs were to be cut, but after negotiations with the works council and IG Metall, this number was reduced to 825. The changes cannot be denied: ZF is trying to cushion the negative effects on employees as best as possible with partial retirement programs and the expiration of fixed-term contracts. This all comes in the context of ongoing challenges such as semiconductor supply bottlenecks and the upcoming decision to phase out the internal combustion engine.

Insights into the company's history

ZF Friedrichshafen AG, known as one of the leading automotive suppliers worldwide, was founded on August 20, 1915 and has since developed into an important player in mechanical engineering, the automotive industry and many other areas. The headquarters is in Friedrichshafen, Germany, and the group employs over 161,000 people globally. With sales of 41.4 billion euros in 2024, they are well in the running, but could face 7,600 more job cuts in Germany in the near future, part of a larger plan. Wikipedia outlines the company history and the significant milestones that have shaped the company.

The company is not only strong in Europe but also has significant market shares in other regions such as North America and Asia Pacific. CEO Mathias Miedreich is at the top and always emphasizes solidarity with the works council in order to overcome the challenges together. With a clear focus on the future, ZF invests around 5% of its sales annually in research and development to remain innovative and meet market requirements.

Looking into the future

The workforce is optimistic about the current situation and sees the restructuring plan as a necessary adjustment to the economic conditions. Human resources director Lea Corzilius speaks of a collective effort that allows everyone to pull together. Employees are offered support with career reorientation to make the transition easier. The Süddeutsche Zeitung describes that despite all the challenges, ZF is firmly determined to avoid redundancies for operational reasons and to work out solutions with the affected employees.

Additional cost-cutting measures such as postponing planned wage increases and the elimination of transformation funds for 2025 and 2026 show the urgency of the situation. ZF makes it clear that it does not intend to absorb the E division, which gives some employees a perspective. However, it remains to be seen how the markets will perform, particularly given the sluggish sales of electric cars and the unforeseen challenges plaguing the industry.