Core Points - ZF Friedrichshafen plans to cut approximately 25% of its workforce in the electrified powertrain technology unit by 2030 as part of a restructuring agreement with its works council and labor union IG Metall [1][2] - The broader plan includes eliminating up to 14,000 positions in Germany due to weak electric vehicle demand and global trade tensions, alongside a high debt burden from past acquisitions [2] - The company aims to reduce costs by over 500 million euros ($536 million) by 2027 through job cuts, shorter working hours, and postponed wage increases [3] Workforce and Employment Changes - The job cuts will total 7,600 positions, with the company offering early retirement options and severance packages while committing to avoid forced redundancies [3] - Weekly working hours at the unit's German sites will be reduced by about 7% through 2027, and a planned 3.1% pay rise will be postponed from April to October 2026 [8] Company Strategy and Leadership - ZF will retain its powertrain technology unit in-house after previously considering a spin-off, indicating a strategic shift under new CEO Mathias Miedreich [4][5] - The restructuring deal is seen as a response to ongoing protests from ZF workers and reflects broader challenges faced by German suppliers in the automotive sector [6] Industry Context - The German auto sector has lost around 55,000 jobs since 2023, with suppliers being particularly affected by weak market conditions and uncertainties regarding U.S. tariffs [6] - Competitors like Bosch have also announced significant job cuts, highlighting the challenges within the industry [6] Commitment to Employees - ZF's works council chief expressed confidence in "Made in Germany" technologies, while IG Metall representatives noted that workers made concessions with the expectation that ZF would continue to provide fair job conditions [7] - The company has pledged to assist employees in transitioning to new roles, including offering retraining opportunities [7]