Image: ZFZF is currently facing a severe crisis and announced last autumn that it would cut 7,600 jobs in its Electrified Powertrain Technologies Division (Division E for short), which has long been operating below projected capacity. ZF subsequently conducted a special review under the banner of ‘Make or Buy’ to determine whether it would continue developing and manufacturing electric motors and inverters in-house or instead source them externally in the future.The decision has now been made in favour of in-house production. “The decision to produce the core components of electric powertrains, namely motors and inverters, was made in close collaboration with our employee representatives,” said ZF CEO Mathias Miedreich. “This aligns with our employee-oriented corporate culture but requires significantly improved cost structures to return our electric powertrains to a path of economic success and secure employment in the long term.”“The outcome of the special review is a major success for us and the employees in Germany. We must not forget: last summer, both products were marked for ‘Buy’, which would have meant a massive reduction in jobs and the loss of expertise,” said Achim Dietrich, Chair of the General Works Council. “With the E-Division alliance and a strong, solidarity-based workforce behind us, we managed to have this decision reviewed—and reversed.”However, although Division E has now reached an agreement between management and the works council, ZF will not reduce the previously announced 7,600 job cuts in the division. Instead, the company plans further reductions. Division E head Sebastian Schmitt said that ZF would cut an additional three-digit number of jobs in the powertrain division as part of its “Make” decision covering electric motors and inverters. Reports also indicate that several hundred jobs will be eliminated at the Bavarian sites in Schweinfurt and Auerbach, where more than 1,000 employees currently work in electromobility.Like many other automotive manufacturers and suppliers, ZF had expected a rapid ramp-up of electric mobility. However, weaker-than-expected demand for electric vehicles pushed the company’s passenger car powertrain division into the red, prompting an ongoing restructuring process that ZF has confirmed.CEO Mathias Miedreich initiated the special review after taking over from Holger Klein on 1 October 2025. Before becoming CEO, Miedreich headed Division E as a member of the executive board. German media suggest that Miedreich is pursuing a different management approach from his predecessor, placing greater emphasis on consensus, transparency and cooperation with employees.zf.com, wiwo.de, manager-magazin.de (all in German)
