German auto-supplier ZF Friedrichshafen named Mathias Miedreich as its new CEO in a decisive leadership shake-up. This has come as the company presses forward with a far-reaching cost-cutting and restructuring plan.
The change was officially announced on September 11, 2025, when ZF’s Supervisory Board approved a mutual agreement for the exit of current CEO Dr. Holger Klein, effective September 30. Klein, who took over in January 2023, will step down together with Prof. Dr. Peter Laier owing to differing views regarding strategic direction.
Taking over the reins is Mathias Miedreich, who joined ZF earlier in 2025 as the board member in charge of its Electrified Powertrain Technology division.
A Strategic Hand‑Off at a Critical Time
The Supervisory Board of ZF has come out to express confidence in Miedreich’s leadership, citing his experience, decisiveness, and strong communication skills for helping them navigate this challenging phase.
Meanwhile, Klein reflected on his tenure as laying important groundwork: he highlighted how his “Strengthening Our Strengths” strategy helped to stabilize operations and boost cash flow, but said the time was right to hand over the torch for the next phase of transformation.
The change of CEO is part of a more significant realignment. In October 2025, the company announced a reorganization that will cut the number of ZF’s Board of Management from six to five members; as part of this, Andreas Moser, who headed its Industrial Technology division, has taken over Commercial Vehicle Solutions, Industrial Technology, and the India region.
At the same time, ZF has established a Transformation Committee that centralizes control of its turnaround initiatives, directly connecting main functions-production, strategy, material management, and sales-to the executive board.
Deep Restructuring, Big Job Cuts
Miedreich takes the helm just as ZF concludes a historic restructuring agreement with its works councils and the union IG Metall.
Under the agreement, ZF plans to eliminate about 7,600 jobs in its Electrified Powertrain Technology division-through 2030, internally known as “Division E.
Importantly, the division will remain in-house-it had been speculated for some time that it could be spun off-but under a leaner and reoriented structure focused on ecosystem partnerships and more efficient product lines.
ZF said it plans to achieve above €500 million of cost savings by 2027 through a range of measures including reducing the weekly working hours through 2027 by about 7 percent and deferring a scheduled pay increase of 3.1 percent.
Rather than relying on compulsory redundancies, the cuts will largely be managed through voluntary departure schemes, severance packages, options for early retirement, and retraining programs.
Challenges Driving the Turnaround
The move also marks a leadership change in the wake of increasing headwinds for ZF. In 2024, the company registered a €1 billion loss, which was largely due to restructuring costs, soft demand in the auto sector, and the pricey shift to electrification. Reuters ZF has acknowledged significant “pressure” on its operations, fueled by slowing EV uptake, global economic uncertainty, and competition from lower‑cost producers. Reuters Making matters worse, ZF carries a substantial debt load, much of which is a result of previous acquisitions. Reuters The company’s restructuring plan, announced for the first time in mid‑2024, was intended to cut 11,000 to 14,000 jobs in Germany by 2028, mainly by restructuring Division E.
press.zf.com A forward-looking CEO on a Mission Miedreich’s ascent to the CEO’s chair is largely seen as a signal: that ZF is placing its bet on transformational leadership that deeply understands the core difficulties of its powertrain business. Having previously led its Electrified Powertrain Technology division, he is well-versed in the technical and commercial challenges inherent in transitioning to electric mobility. press.zf.com He has also signaled a new emphasis on clarity, speed, and impact in his new role; values underpinning the newly formed Transformation Committee and a wider realignment effort. electrive.com Former head of ZF’s electrified drivetrain product line, Sebastian Schmitt, has now taken operational charge of Division E and reports directly to Miedreich, while Miedreich retains strategic oversight on the Board. electrive.com This consolidation is intended to make the management structure more agile and less bureaucratic as ZF navigates a hard yet necessary transformation. Outlook: High Stakes, High Ambition The period of restructuring under the new CEO is fraught with several risks.
Large-scale restructuring, combined with industrial uncertainty, demands financial discipline and renewal of technology by Miedreich. But if it works, the strategy could strongly reposition ZF not just as a surviving supplier in the transition to EVs, but as a leaner and more future-oriented partner in powertrain innovation. With the Transformation Committee in place and a compensation‑saving framework negotiated with employees, ZF has created a platform for change. The real test now is in execution: delivering on cost savings, retaining critical talent, and scaling up its next-gen powertrain technologies-and doing so before the structural headwinds overwhelm.
