ZF to Cut 7,600 Jobs in Restructuring Amid Poor Demand

ZF Friedrichshafen AG announced on Wednesday that it will cut 7,600 jobs at its electrified drivetrain division as part of a restructuring effort to address declining demand. This reduction is part of a previously disclosed plan to eliminate up to 14,000 positions over the course of the decade.

The job cuts have received approval from labor leaders and are accompanied by additional cost-saving measures, including the postponement of wage increases and a reduction in working hours in Germany. ZF expects these initiatives to save more than €500 million (approximately $588 million) by 2027.

This decision reflects ongoing challenges within the German auto industry, which is facing sluggish demand in Europe, increased tariffs, and growing competition from Chinese manufacturers. Other major companies in the sector, such as Robert Bosch GmbH, have also announced significant job cuts, with Bosch planning to eliminate around 13,000 positions, or about 3% of its global workforce. Similar measures have been reported by Continental AG and Schaeffler AG, while automakers like Volkswagen AG are reducing production.

Overall, the German auto industry is projected to cut nearly 100,000 jobs by 2030 as it navigates these economic pressures.