On May 19, German automotive parts giant ZF announced that it will retain its in-house electric motor development and manufacturing operations. However, to maintain market competitiveness, the company will need to cut hundreds more jobs.
Previously, European automakers and parts suppliers had invested heavily in new electrification technologies. However, the adoption of electric vehicles in the market has been slower than expected, and industry demand is only now gradually recovering.
As early as last October, ZF finalized a comprehensive business restructuring plan, confirming the layoff of 7,600 employees. In this latest move, the company collaborated with employee representatives to evaluate whether to continue in-house production of core electric drive components such as motors and inverters, or to switch to external procurement.
Ultimately, ZF decided to retain its internal production lines while confirming the need for further workforce streamlining, stating that it would avoid mandatory layoffs as much as possible.
A ZF spokesperson revealed that the layoffs will primarily affect the two major production sites in southern Germany—Schweinfurt and Auerbach. With over 1,000 employees currently working at these two facilities, hundreds of positions will be cut in total.
