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ZF Announces Major Restructuring: Job Cuts, Hour Reductions to Boost Competitiveness

ZF's new CEO, Mathias Miedreich, leads major restructuring. Employees face job cuts and hour reductions, but the company aims to save over 500 million euros by 2027.

,   and  Administrator
1 min read
Here we can see engine parts of a vehicle and some other parts. In the background there is a car.
Here we can see engine parts of a vehicle and some other parts. In the background there is a car.

ZF Announces Major Restructuring: Job Cuts, Hour Reductions to Boost Competitiveness

ZF Friedrichshafen, the German automotive supplier, has announced significant changes to its operations and workforce. The company aims to restore competitiveness in its 'Division E' products, while also implementing cost-cutting measures and adjusting employee working hours.

ZF has abandoned plans to spin off or outsource its powertrain division 'Division E', instead focusing on a revamp to improve competitiveness. This decision comes as part of the company's restructuring efforts. Employees in Germany, Schweinfurt, and Friedrichshafen will see their working hours reduced by an average of around 7 percent until the end of 2027, leading to wage losses. This reduction is expected to result in savings of over 500 million euros by 2027, as agreed upon by ZF and its employees.

New CEO Mathias Miedreich, who assumed the role in October 2025, sees this agreement as a significant milestone for ZF. He acknowledged the harsh cuts for employees, stating, 'These measures are necessary to secure the future of our company.' Miedreich previously led the Electrified Powertrain Technology division and succeeded Dr. Holger Klein as CEO. He has been a board member since January 2025.

'Division E' is expected to reduce 7,600 jobs by 2030, contributing to the company's goal of reducing up to 14,000 jobs by the end of 2028. The planned wage increase for April 2026 has also been postponed.

ZF's restructuring efforts aim to restore competitiveness and secure the company's future. The agreement with employees on cost-cutting measures and working hour reductions is expected to result in significant savings. However, these changes also mean job losses and wage adjustments for employees. The new CEO, Mathias Miedreich, has acknowledged the challenges faced by employees during this transition.

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