This is the most important goal of the new ZF CEO - ZF slashes costs and jobs to survive the electric shift by 2027
ZF, the automotive supplier near Lake Constance, is slashing costs to tackle a heavy debt load. Weak car production, falling orders and a slow shift to electric vehicles have hit the company hard. Now, drastic measures are underway to stabilise its finances by 2027.
The company’s core division, which focuses on drivetrains, is leading the restructuring effort. It aims to cut over €500 million in costs by 2027. Another unit, Division E, has already turned its fortunes around—after losing hundreds of millions last year, it broke even by mid-2024 and is set to finish the year in profit.
ZF is also exploring the sale of business units, including its former 'Passive Safety Technology' division, to ease debt pressure. Earlier attempts to offload the ZF Lifetec division to partner Schaeffler failed. Meanwhile, up to 14,000 jobs in Germany could disappear by 2028, with thousands already gone and many workers facing reduced hours.
Mathias Miedreich, ZF’s new CEO, has made debt reduction his top priority for the next two years. His strategy includes giving individual divisions more independence to improve efficiency and agility. The goal is to restore financial flexibility and operational freedom.
The restructuring will reshape ZF’s workforce and operations over the next four years. If successful, the cost cuts and asset sales could reduce debt and strengthen the company’s position in a changing automotive market. The outcome will depend on how quickly divisions adapt and whether planned sales go through.
