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ZF Keeps Drive Unit In-House as New CEO Unveils €500 Million Savings Plan

A deal with employee representatives launches an internal overhaul of the e-mobility business to stabilize finances and limit forced layoffs.

Overview

  • ZF and its works council/IG Metall scrapped plans to carve out or sell Division E and agreed a restructuring expected to save more than €500 million by 2027.
  • About 7,600 positions in Division E are planned to be reduced by 2030 under severance, qualification and transfer measures, with the company reiterating its aim to avoid compulsory redundancies.
  • A 3.1% wage increase scheduled for April 2026 will be deferred to October, and weekly working time will be cut by roughly 7% through end‑2027 in the e‑mobility area as well as at Schweinfurt and Friedrichshafen’s Operation Z.
  • The pact comes as Mathias Miedreich takes over as CEO on October 1, with ZF carrying a first‑half 2025 loss of €195 million and around €10.5 billion in net liabilities.
  • The overhaul sits within a wider target of up to 14,000 job reductions in Germany by end‑2028, while sector headwinds persist, with Bosch announcing further cuts and warning that expected EV demand has not materialized.