Major German automotive supplier ZF Friedrichshafen announced on Wednesday that it will cut 7,600 jobs in Germany by 2030, representing about seven percent of its domestic workforce. The reductions target the division that manufactures vehicle transmissions and are part of a broader plan unveiled last year to lay off as many as 14,000 people. Additional measures—such as reducing some employees’ hours and postponing a planned pay rise—are expected to save over half a billion euros by 2027.
ZF, Germany’s second‑biggest auto supplier, employed roughly 160,000 people worldwide at the end of 2024. The move comes as German suppliers grapple with sluggish global car demand, especially for electric vehicles in Europe, and a fierce automotive price war in China that is eroding industry margins. Other major suppliers, including Bosch, Schaeffler and Continental, have also announced significant job cuts recently. Bosch, the world’s largest auto supplier, revealed last week that it will cut 13,000 jobs in Germany.
IG Metall union official Achim Dietrich, head of ZF’s works council, described the cuts as a “painful process” but necessary because of structural problems in the industry. Helene Sommer, local IG Metall head in Friedrichshafen—where ZF is headquartered—said there is a “joint commitment” to avoid compulsory redundancies, though they cannot be entirely ruled out. The company has implemented a “very generous voluntary programme and other measures” to minimise the impact on employees.
The substantial job cuts at ZF Friedrichshafen underscore the challenges facing the German auto sector, which is undergoing a major transformation driven by the shift to electric vehicles and changing consumer demand. As the industry continues to evolve, further restructuring and job reductions are likely to be required to ensure the long‑term sustainability of German auto suppliers. The announcement serves as a reminder that the sector must adapt to changing market conditions and find new ways to remain competitive in a rapidly shifting global market.
Comments are closed for this story.