ZF Plans Major Workforce Reductions amid Operational Changes in Saarland

ZF Friedrichshafen has recently confirmed significant operational adjustments at its Saarland facility, primarily concerning its drive division which will remain a part of the company amid cost-cutting initiatives. According to a consensus reached with works councils, while there will be no investor takeover, employees will face several challenges—including a delay in a planned salary increase from April 2026 to October 2026 and a reduction in work hours by approximately 7% until the end of 2027.

The company plans to reduce its workforce by a total of 7,600 positions through severance packages, with 375 job reductions expected this year and 450 anticipated in 2027. Despite these cuts, ZF has indicated that the high demand for combustion engine transmissions will mitigate immediate impacts on the Saarbrücken site. ZF’s CEO, Mathias Miedreich, emphasized the necessity of these measures, projecting savings of over half a billion euros. "We must strengthen our market position despite the challenges faced by our employees," he stated. The IG Metall union noted that there would be minimal immediate consequences for workers, with only salary delays and no operational layoffs required currently. These cost-saving strategies were originally announced in July, with further discussions on the Saarbrücken plant’s future extending into late September.