ZF Considers Spinning Off Major Division Amid Workforce Concerns

The automotive supplier's potential carve-out of its E-Division could impact 32,000 jobs and a quarter of its revenue.

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.