Mass layoffs spark protests by 6000 employees in Baden-Württemberg
ZF Friedrichshafen, a prominent German auto supplier, is grappling with a significant crisis as it faces job cuts, employee protests, and an uncertain restructuring plan. Since the beginning of 2024, the company has already eliminated around 5,700 jobs, with further cuts planned, including at major sites like Friedrichshafen [1].
The employees, who are feeling the brunt of these changes, are making their voices heard. A nationwide resistance is forming, with protests organized by the works council in Friedrichshafen and similar actions planned in Saarbrücken and Schweinfurt [1]. The workers are demanding an end to cuts at their expense and clear prospects for the Friedrichshafen location [1].
The powertrain division (Division E) of ZF is particularly affected, with management and unions agreeing on a roadmap for its restructuring. The aim is to finalize concrete measures by the end of September 2025 [3]. However, all scenarios currently being discussed involve severe cutbacks in Germany, although no immediate drastic cuts have been announced yet pending these talks [3].
The division is struggling due to weak demand for electric drives and low prices for conventional transmissions. Additionally, ZF is burdened by nearly €10 billion in debt and high interest payments, exacerbating financial pressure [3]. The company's management has not ruled out compulsory layoffs and is considering options such as spinning off or selling the powertrain division, which could affect up to 30,000 employees [2].
The company reported a loss exceeding €1 billion in 2024 after a profit in 2023, and faces declining orders and investment challenges [1]. The management is being criticized for focusing too much on numbers and disregarding the people behind the machines [1].
As the company prepares to present its half-year figures on July 31st, the workforce is looking forward to this date with mixed feelings, eager for clarity and hopeful for a brighter future.
The workers and their families, deeply affected by the job cuts and restructuring plans, are rallying together, expressing their concern about the future of the company and their own livelihoods. Protests are being organized not just in Friedrichshafen [1], but also in Saarbrücken and Schweinfurt [1], demanding better prospects for the Friedrichshafen location [1]. Meanwhile, the politics of ZF's restructuring, including potential layoffs and the fate of the powertrain division, has become a general news topic, with the public closely watching the company's half-year figures presentation on July 31st [1], hoping for a brighter future.
