Billion-dollar order for ZF: What does that mean for jobs? - ZF secures billion-euro BMW deal amid financial struggles and job cuts

Automotive supplier ZF has landed a multi-billion-euro deal with BMW, marking its biggest single order since 2019. The contract covers the supply and development of an advanced automatic transmission for electrified vehicles. Despite this win, the company continues to face financial struggles and planned job cuts across Germany.

The agreement spans several billion euros and will run through the late 2030s. It focuses on ZF's 8HP automatic transmission, optimised for hybrid and electric drives. One key site benefiting from the deal is the Saarbrücken plant in Germany, where development and production will take place.

The contract arrives as ZF grapples with high debt from past acquisitions and weak demand from car manufacturers. The company still plans to cut up to 14,000 jobs in Germany by 2028, with thousands already laid off and many workers facing reduced hours. While the BMW deal supports ZF's E-Mobility division, it does not change the broader restructuring plans.

ZF currently employs around 161,600 people across 161 locations in 30 countries. In 2024, the supplier reported revenue of roughly €41.4 billion. Its 2025 financial results will be published on March 19.

The BMW contract provides a major boost to ZF's transmission and electrification efforts. However, the company's financial challenges and job reductions remain unchanged. The deal secures long-term work for the Saarbrücken plant but does not alter the broader cost-cutting strategy.