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ZF Keeps Drivetrain Division In-House, Plans 7,600 Job Cuts by 2030

Union-backed deal reflects deep cost pressure from weak EV demand.

Overview

  • Management and employee representatives agreed immediate measures targeting about €500 million in annual savings by 2027, including delayed wage increases, reduced weekly hours for Division E staff and changes to special payments.
  • The reductions are included within the previously announced plan to cut up to 14,000 jobs in Germany, with departures to be pursued primarily through voluntary exits, early retirement and transfers.
  • Voluntary severance programs begin in mid-October, while decisions on whether to keep producing e‑motors and inverters in-house or source them from partners are due in the coming weeks.
  • ZF will narrow Division E’s portfolio by ending development of on‑board chargers, DC‑DC converters and electric beam axles, focusing instead on thermal management systems and the next 8HP hybrid transmission.
  • New CEO Mathias Miedreich unveiled the package on his first day as ZF reported a €195 million first‑half loss and net liabilities of about €10.5 billion.