Overview

• ZF Friedrichshafen is exploring the separation of its E-Division, which includes electric, hybrid, and conventional drivetrains, as part of strategic reviews.
• The division accounts for 11.5 billion euros in revenue annually and employs 32,000 people, representing a significant portion of the company's workforce and revenue.
• Union representatives and local officials have expressed concerns over job security, with IG Metall warning the move could threaten thousands of positions, particularly in Saarbrücken.
• ZF's management cites challenges such as high costs, delayed adoption of e-mobility, and low margins in traditional drivetrain businesses as reasons for the potential restructuring.
• The company is also implementing broader cost-cutting measures, including plans to reduce up to 14,000 jobs in Germany by 2028, as part of efforts to address financial pressures.