ZF Produces Motors In-House and Cuts Hundreds of Jobs

[Company Update] ZF has decided to continue in-house production of electric motors while cutting hundreds of jobs.

Core Strategic Move: Retaining Key In-House R&D Capabilities

ZF has ultimately chosen to maintain in-house production of motors and inverters to safeguard technological sovereignty and preserve trust with premium customers, avoiding outsourcing these critical components.

Key Figures: Hundreds of Positions Cut, Focus on German Plants

Hundreds of positions will be eliminated at two plants located in Schweinfurt and Auerbach, Germany. The two facilities currently employ over 1,000 people. The company emphasized its commitment to avoiding forced layoffs as much as possible.

Underlying Strategy: Cost Optimization Amid Pressure from Electrification Transition

Although demand for electric vehicles is gradually recovering, earlier-than-expected market growth rates—combined with massive investments in technology—have compelled ZF to pursue further structural adjustments following last year’s announcement of a plan to cut 7,600 jobs.