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

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

In the heart of Germany, more precisely in Friedrichshafen, big changes are coming to the traditional company ZF Friedrichshafen. The new CEO Matthias Miedreich unexpectedly announced that up to 14,000 jobs would be cut in Germany by 2028. This is done through a volunteer program, which also applies to long-standing employees of the central Division E, which deals with drive types. Loud Mercury Severance packages of up to 250,000 euros are being promised.

The background to this drastic decision is the company's tense financial situation. ZF Friedrichshafen is heavily indebted and is faced with a massive decline in orders, particularly in the area of ​​electric drives. The majority of the job cuts will affect Division E, which includes the product lines for electric and hybrid drives as well as classic combustion engines. The company has not yet published any specific figures on the severance packages, but plans to finalize the program in the coming days. The IG Metall union and the general works council have spoken out in favor of a restructuring plan that should enable an orderly withdrawal.

History and development of ZF

The gear factory was founded in 1915 by Count Ferdinand von Zeppelin and Alfred von Soden-Fraunhofen with the original goal of producing gears for Zeppelins and other airships. Over the years, the company developed into one of the leading suppliers to the automotive industry. ZF has achieved significant milestones, including the introduction of advanced automatic transmissions and the acquisition of key companies in the industry. A look at its more than 100-year history shows that ZF has always been willing to reinvent itself and adapt to market conditions, which is also the case in the current situation. Further information about the story can be found at Wikipedia.

The group employs around 161,631 people and achieved sales of 41.4 billion euros in 2024. However, the challenges that ZF now faces cannot be underestimated these days. The threat of job cuts represents a major challenge for both employees and location policy in Germany.

Job cuts and future prospects

If you look at the developments at ZF, it becomes clear: The job cuts do not only affect Division E mentioned above. A total of 7,600 jobs are to be cut by 2030, but the focus is on the fact that no further plant closures are planned in Germany in the drive division. Large locations on Lake Constance, in Saarbrücken and in Schweinfurt still appear to be secured, even if the ongoing restructuring leaves a bitter aftertaste.

The next few months will remain exciting for the affected employees. While some could take advantage of the opportunity to retire or move on to new horizons, others have no choice but to navigate an uncertain situation. Although ZF is optimistic that it will be able to maintain the drive division, the statement that redundancies for operational reasons cannot be completely ruled out makes it clear that uncertainty remains. After all, it is expected that no operational layoffs will be announced for 4,900 employees from Company Z at the headquarters until June 30, 2028, which represents a ray of hope.

The coming months will show how well ZF Friedrichshafen can survive these difficult times and whether the company will be able to reposition itself as the automotive industry continues to move towards electromobility and new production technologies become increasingly important.