ZF Group Unveils €500M Restructuring Plan for Electrified Drive Technology Division
ZF Group has announced a significant restructuring plan for its Electrified Drive Technology division. The agreement, reached with the company's general works council and IG Metall union, aims to avoid lay-offs and support employees in their professional reorientation. The plan is expected to result in more than €500 million in cost savings by 2027.
The restructuring will involve immediate cost savings through wage adjustments and reduced working hours at specific sites. ZF will focus on developing innovative products while discontinuing development activities in certain product groups. The company aims to strengthen its position as a leading technological player in the market and increase its competitiveness.
The agreement is expected to lead to 7,600 job cuts in Division E by 2030, with a focus on achieving these through voluntary programs and transfer measures. Despite this, Division E will remain an integral part of ZF Group and focus on further developing its product range and forming ecosystem partnerships. IG Metall expects ZF to position itself as a driver of employment and a guarantor of good working conditions for the future.
ZF has agreed on a comprehensive package of measures with its general works council and IG Metall union to restructure Division E and strengthen competitiveness. The measures include a 7% reduction in working hours, collective bargaining adjustments, and company contributions. The company aims to navigate the changes while supporting its employees and maintaining its position as a technological leader.
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