Auto Supplier ZF Announces Comprehensive Cost-Cutting Program - Alliance with Employees - ZF Announces Major Restructuring Plan to Secure Future in Electric Mobility
ZF has announced a significant restructuring plan that includes job cuts and changes to working hours. The company aims to secure its future in the face of increasing competition, particularly in the electric mobility sector.
ZF will eliminate around 14,000 jobs by 2028, with the largest reduction, 7,600 positions, coming from its largest business division, the E division. The company aims to avoid dismissals and has offered early retirement and severance programs to employees.
In the electric mobility division, ZF will reduce weekly working hours by around seven percent by the end of 2027. This move, along with postponing a planned wage increase of 3.1 percent until October 2026, is expected to save the company around €500 million.
Barbara Resch, a representative of IG Metall, emphasized the need for ZF to be future-proof as an employer. ZF CEO Mathias Miedreich described the agreement with employees as a 'milestone' for long-term market leadership.
ZF's restructuring plan, which includes job cuts and changes to working hours, aims to secure the company's future in the competitive electric mobility market. The company has no plans to spin off its electric mobility division.
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