Global Auto Parts Giant Also Struggles! 12,000 ZF Employees Protest on the Streets Against Massive Layoffs and Pay Cuts

On July 31, it was reported that this Tuesday, more than 12,000 employees across Germany took to the streets to protest against the tightening policies and layoff plans of automotive parts giant ZF Group, opposing the board's plans to further cut thousands of jobs and continue suppressing wages.

ZF was once among the world’s top three automotive parts giants, but now it is deeply mired in a financial crisis.

According to reports, ZF made a profit of 126 million euros in 2023, but turned to a loss in 2024, with losses exceeding 1 billion euros. Behind this are a slowdown in electric vehicle orders, 10 billion euros of debt left from a major acquisition, and impacts from EU tariff policies.

ZF has implemented measures such as layoffs, salary reductions, reduced working hours, cancellation of one-time bonuses, and cuts in above-standard benefits to save costs, which has also caused employee dissatisfaction.

Last year, ZF revealed plans to cut up to 14,000 jobs in Germany, and there were even reports that its electric drive division might be completely spun off or sold, potentially affecting as many as 30,000 employees.

The layoff plan by ZF has sparked widespread concern among employees and strong resistance from the unions. Employees are worried that the layoffs will not only directly affect their livelihoods but may also have a ripple effect on the employment situation in the entire German automotive industry.

The trade union IG Metall stated that if ZF does not change its plans, further protest actions will be taken. The union emphasized that companies should help employees adapt to the transition through retraining and other means, rather than simply resorting to layoffs.

"If you sell all the electric drives, what transformation are you talking about?" What everyone wants is the right to participate, to have a place in the future industry, rather than being "costs" that are optimized away.

It is understood that ZF is a global giant in automotive parts, holding a world-leading position in automotive powertrain and chassis technology, and is one of the world's top three transmission manufacturers.

However, ZF's layoffs are not an isolated incident; the entire European automotive supply chain is facing similar difficulties. Companies such as the Faurecia Group, Continental Group, Bosch, Schaeffler, and Valeo have also successively announced layoff plans.