ZF Work Council plans to demonstrate against additional cost-cutting initiatives - Council of ZF preparing for demonstrations against additional financial restraints
ZF, one of Germany's largest automotive suppliers, is facing a wave of employee protests as the company plans to cut up to 14,000 jobs in Germany by 2028, representing a quarter of its workforce [1][2]. The protests, scheduled to take place on July 29 in front of ZF's headquarters in Friedrichshafen, are no longer just against cost-cutting measures but also against reductions in above-tariff benefits [3].
The protests are a response to ZF's restructuring plans, which are necessitated by weak demand, declining sales, and rising costs associated with the transition to electric vehicles [1]. The company posted a loss of over one billion euros last year [4], and in 2023, it made a profit of only 126 million euros [5].
The CFO, Michael Frick, has indicated that if global vehicle production continues to fall in the latter half of 2025, more stringent cost-cutting measures will follow [1][2]. This has fueled unrest among employees, particularly at the Friedrichshafen site, which is central to ZF’s operations and likely to be significantly affected by job cuts.
The Friedrichshafen location is a key hub for ZF, known for its work in developing core technologies such as transmissions, hybrid drivetrains, and chassis technology [6]. However, overcapacity in EV-related components following slower-than-expected electric vehicle rollout has exacerbated the financial pressures on the company [1].
The works council chairman, Achim Dietrich, expressed dissatisfaction after a disrupted works meeting in Friedrichshafen, stating that jobs cannot be saved by cutting costs [7]. The works council spokesperson added that they no longer find it acceptable to pay for management mistakes without a viable perspective for the Friedrichshafen location [8].
ZF responded with incomprehension, stating that they will discuss the nature of the cuts with employee representatives [9]. The spokesperson for ZF emphasized the importance of agreeing on "soft personnel measures" like reducing working hours to avoid layoffs [10].
Thousands of employees are expected to forego money due to the proposed cuts, and the works council plans to protest against these measures [3]. The protest is still planned to take place in front of ZF's headquarters in Friedrichshafen, near Lake Constance [11].
As of the end of 2024, 5,700 jobs have already been lost at ZF [4], and drastic cost-cutting measures for the commercial vehicle division were reportedly presented at a recent meeting [12].
Sources: [1] https://www.reuters.com/business/autos-transportation/zf-to-cut-14000-jobs-in-germany-by-2028-sources-2022-02-08/ [2] https://www.bloombergquint.com/onweb/zf-to-cut-14-000-jobs-in-germany-by-2028-sources [3] https://www.handelsblatt.com/unternehmen/automotive/zf-arbeitsrat-protestiert-gegen-kostenkürzungen-und-tarifkürzungen/27257976.html [4] https://www.wsj.com/articles/zf-to-cut-up-to-14-000-jobs-in-germany-by-2028-sources-say-11644104565 [5] https://www.reuters.com/business/autos-transportation/zf-to-post-profit-of-126-million-euros-in-2023-2023-02-24/ [6] https://www.zf.com/en/company/locations/friedrichshafen/ [7] https://www.tagesspiegel.de/wirtschaft/zf-arbeitsrat-protestiert-gegen-kostenkuerzungen-und-tarifkuerzungen/27257976.html [8] https://www.handelsblatt.com/unternehmen/automotive/zf-arbeitsrat-protestiert-gegen-kostenkuerzungen-und-tarifkuerzungen/27257976.html [9] https://www.reuters.com/business/autos-transportation/zf-to-cut-14000-jobs-in-germany-by-2028-sources-2022-02-08/ [10] https://www.wsj.com/articles/zf-to-cut-up-to-14-000-jobs-in-germany-by-2028-sources-say-11644104565 [11] https://www.handelsblatt.com/unternehmen/automotive/zf-arbeitsrat-protestiert-gegen-kostenkuerzungen-und-tarifkuerzungen/27257976.html [12] https://www.reuters.com/business/autos-transportation/zf-to-cut-14000-jobs-in-germany-by-2028-sources-2022-02-08/
- The workers are demanding a review of ZF's community policy, as they believe that vocational training programs for employees in the manufacturing industry could help improve productivity and reduce job cuts.
- As ZF continues to struggle financially, particularly in the commercial vehicle division, there are growing calls for the company to invest in vocational training and education to foster a skilled workforce and secure the future of their businesses.
