Major German automotive supplier ZF Friedrichshafen announced on Wednesday that it will cut 7,600 jobs by 2030, as the crisis in the country’s auto sector intensifies. The cuts, which will all take place in Germany, represent about seven percent of ZF’s workforce in the country.
The affected jobs are in the division that manufactures transmissions for vehicles, and are part of a broader plan announced last year to lay off as many as 14,000 people. Additional measures, including reducing some employees’ hours and delaying a planned pay rise, are expected to save over half a billion euros by 2027. ZF, Germany’s second-biggest auto supplier, had around 160,000 employees worldwide at the end of 2024.
The move comes as German auto suppliers struggle with sluggish demand for cars globally, particularly for electric cars in Europe. A fierce automotive price war in China is also eating into industry margins. Other major suppliers, including Bosch, Schaeffler, and Continental, have also announced significant job cuts in recent times. Bosch, the world’s biggest auto supplier, announced last week that it would cut 13,000 jobs in Germany.
According to IG Metall union official Achim Dietrich, who heads ZF’s works council, the job cuts are a “painful process” but necessary due to structural problems in the industry. Helene Sommer, local head of IG Metall in Friedrichshafen, where ZF has its headquarters, said that there is a “joint commitment” to avoid compulsory redundancies, although these cannot be entirely ruled out. The company has a “very generous voluntary programme and other measures” in place to minimize the impact on employees.
The significant job cuts at ZF Friedrichshafen highlight the challenges facing the German auto sector, which is undergoing a major transformation due to the shift towards electric vehicles and changing consumer demand. As the industry continues to evolve, it is likely that further restructuring and job cuts will be necessary to ensure the long-term sustainability of German auto suppliers. The announcement by ZF Friedrichshafen serves as a reminder of the need for the industry to adapt to changing market conditions and to find new ways to remain competitive in a rapidly changing global market.
