ZF Announces Major Restructuring Plan to Tackle Debt and Costs
ZF Friedrichshafen is implementing significant changes to tackle its substantial debt burden and rising costs. The company has announced a comprehensive restructuring plan, including job cuts and employee concessions, while also exploring strategic partnerships in electromobility.
By 2030, ZF will reduce 7,600 jobs in 'Division E', part of the previously announced goal to cut up to 14,000 jobs by the end of 2028. This decision comes as rising interest rates impose additional costs of hundreds of millions of euros annually. To address these challenges, ZF is forming an alliance with the works council and IG Metall union, with employees agreeing to a postponed wage increase and reduced working hours.
Initially, ZF planned to sell its 'Division E' drivetrain division but has since abandoned this strategy. Instead, the company aims to support 'Division E' independently and explore strategic partnerships in electromobility. This includes potential collaborations with other manufacturers for components like E-motors and inverters, although specific partners have not been named. To achieve savings of over 500 million euros by 2027, ZF will launch a voluntary program in mid-October. The company is committed to avoiding dismissals and will offer early retirement, severance packages, and reduced working hours as alternatives. No factories within 'Division E' in Germany will close, with major sites remaining at Lake Constance, Saarbrücken, and Schweinfurt.
ZF's restructuring plan, involving job cuts and employee concessions, aims to tackle the company's massive debt burden and rising costs. By exploring strategic partnerships in electromobility and implementing a voluntary savings program, ZF seeks to secure its future without resorting to dismissals.
