Overview

• ZF posted a €195 million net loss in the first half of 2025 and carries €10.5 billion in debt, prompting an acceleration of its cost-cutting program.
• The company secured extended and raised covenant limits in June, easing financial pressure and granting temporary relief for its turnaround plan.
• ZF management, IG Metall and the works council are negotiating to formalize restructuring measures for Division E by September 30.
• Division E, which makes electric, hybrid and conventional drivetrains and employs around one-fifth of ZF’s workforce, is deemed partly non-competitive and may face carve-out or partner scenarios.
• ZF plans up to 14,000 job cuts in Germany by 2028, with 5,700 positions already eliminated and the possibility of site-specific layoffs under consideration.