Billion-dollar order for ZF: What does that mean for jobs? - ZF secures billion-euro BMW deal but presses ahead with 14,000 job cuts

ZF, the struggling automotive supplier, has landed its biggest single order since 2019—a multi-billion-euro deal with BMW. The contract covers the development and supply of an automatic transmission, securing long-term work for the company. Yet despite the win, ZF still plans to cut thousands of jobs in Germany by 2028.

The agreement spans decades, with production running into the late 2030s. It marks a major boost for ZF's E-Mobility division and supports other areas of the business. However, the company has made clear that the deal will not halt planned reductions in its workforce.

ZF currently employs around 161,600 people across 161 sites in 30 countries, reporting €41.4 billion in revenue for 2024. But financial strain remains, with high debt and weak demand from automakers pushing the firm into crisis. In Germany alone, up to 14,000 jobs could disappear by 2028, with around 12,000 cuts already announced. Affected regions include Baden-Württemberg, where key sites like Friedrichshafen and Schwäbisch Gmünd operate, and North Rhine-Westphalia, home to plants in Dortmund and Eitorf.

The company has already reduced working hours for many employees and trimmed thousands of positions. Its 2025 financial results, due on March 19, will provide further insight into the ongoing challenges.

The BMW contract offers ZF a long-term revenue stream and strengthens its position in transmission technology. Yet job losses will continue as the company restructures under financial pressure. The deal highlights both the opportunities and difficulties facing suppliers in an evolving automotive industry.