The Major German Automotive Supplier ZF Friedrichshafen Has Reached a Restructuring Agreement With The Trade Union Ig Metall and the Works Council. The Agreement Stipulates That Zf Will Cut 7,600 Jobs by 2030 and Save 500 Million Euros in Costs by 2027.
The Job Cuts Will Occur in the Electric Drive Technology Division. ZF Intends to Manage This Through Severance Packages and Early Retirement Schemes, Among Other Measures. The Company Pledges to Assist Employees in Finding Alternative Employment. Additionally, Workweek Will Be Shortened, and a Planned Wage Increase Will Be Postponed.
The Deal Follows Months of Employee Protests. Last year, ZF Announced its intention to cut up to 14,000 jobs in Germany to Save Costs. The Now Mentioned 7,600 Jobs are included in this.
ZF is Struggling with a High Debt Burden Due to Past Acquisitions. Furthermore, The Automotive Industry is a suffering from Weak Demand for Electric Cars and Global Trade Tensions.