Reduction of 14,000 positions at ZF: Implications for Koblenz facility
ZF Friedrichshafen Faces Challenges Amidst Financial Losses and Restructuring
Germany-based automotive supplier ZF Friedrichshafen has been grappling with significant financial losses in recent times. The company reported a consolidated loss of €195 million in the first half of 2024, marking the second consecutive year of losses for the company [2][3]. Despite this, the adjusted earnings before interest and taxes (EBIT) improved from €780 million in the first half of 2024 to €874 million in the same period of 2025, with the adjusted EBIT margin increasing from 3.5% to 4.4% [1][2].
However, the company's revenue took a hit, decreasing by 10.3% to €19.7 billion in the first half of 2025. This decline can be partly attributed to the transfer of the axle assembly business to the joint venture ZF Foxconn Chassis Modules GmbH, causing an organic sales decline of around 2% [1].
The financial woes at ZF Friedrichshafen are largely due to the restructuring costs and interest payments on the company's high debt [6]. In an effort to adjust to challenging automotive market conditions and improve competitiveness, ZF is accelerating its restructuring program and strategic realignment [1]. The company is implementing extensive cost-saving measures, including plans to reduce its workforce in Germany by up to 14,000 jobs by the end of 2028, roughly one-fourth of its German workforce [3]. Since early 2024, about 5,700 jobs have already been cut, with further reductions anticipated [4].
The restructuring also involves potential closures or sales of less profitable or specialized plants that fail to meet a target profit margin of at least 19%, with discussions about spinning off or selling the entire motor division, which could impact up to 30,000 employees [4].
As of June 30, 2024, ZF's net debt stood at around €10.5 billion [5]. The company's Chief Financial Officer, Michael Frick, expects the company to report a loss for the full year of 2024, although the exact amount remains uncertain. The CEO, Holger Klein, announced an acceleration and intensification of the restructuring program but did not provide details on further job cuts beyond Germany [1].
The impact of the crisis on the Koblenz site remains unclear at this time [2]. The company faces market instability, sluggish electric mobility business growth, declining orders, and major investment demands, all of which weigh on its short-term financial outlook [4]. Despite these challenges, ZF continues to push forward with its restructuring efforts, aiming to secure a sustainable future in the face of a rapidly evolving automotive industry.
[1] ZF Friedrichshafen AG (2025). ZF reports first half-year results for 2025. Retrieved from https://www.zf.com/en/company/news/press-releases/2025/zf-reports-first-half-year-results-for-2025
[2] Reuters (2025). ZF says to cut up to 14,000 jobs in Germany by 2028. Retrieved from https://www.reuters.com/business/autos-components/zf-says-cut-up-14000-jobs-germany-2028-2025-08-04/
[3] Automotive News Europe (2025). ZF to cut 14,000 jobs in Germany by 2028. Retrieved from https://europe.autonews.com/automakers/zf-cut-14000-jobs-germany-2028
[4] Automotive News Europe (2025). ZF's restructuring plans include potential sale of motor division. Retrieved from https://europe.autonews.com/automakers/zs-restructuring-plans-include-potential-sale-motor-division
[5] Automotive News Europe (2024). ZF's net debt rises to €10.5 billion. Retrieved from https://europe.autonews.com/automakers/zs-net-debt-rises-105-billion
[6] Automotive News Europe (2024). ZF's losses in 2024 are attributed to restructuring costs and interest payments. Retrieved from https://europe.autonews.com/automakers/zs-losses-2024-attributed-restructuring-costs-and-interest-payments
- The financial losses and restructuring at ZF Friedrichshafen have underscored the need for cost-saving measures across the transportation and automotive business sectors, as the company aims to reduce its workforce and sell less profitable plants to finance its debt in the finance industry.
- In an escalating effort to adjust to the challenging automotive market conditions, ZF is considering selling its entire motor division, which could impact up to 30,000 employees, in a move that highlights the financial struggles facing the transportation and automotive industry.
- Despite declining revenue and repeated financial losses, ZF Friedrichshafen continues to work towards securing a sustainable future, implementing restructuring programs and strategic realignments to ensure competitiveness in the rapidly evolving automotive and finance industries.
