Zr-C:H:N (x%) coatings with nitrogen additions ranging from 0 to 29 at.% are deposited on AISI M2 steel substrates and micro-drills using a closed field unbalanced magnetron (CFUBM) sputtering technique. The tribological properties of the coatings are tested against AISI 52100 steel balls under loads of 10 and 100 N, respectively, using an oscillating friction and wear tester. The drilling performance of the coated micro-drills is evaluated by performing high-speed through-hole drilling tests using printed circuit boards as a test material. The wear testing results reveal that the Zr-C:H:N-8% coating has excellent tribological properties, including a low wear depth, a low friction coefficient, and an extended lifetime. Meanwhile, the drilling tests reveal that the Zr-C:H:N-8% coating increases the tool life of the micro-drill by a factor of five compared to an uncoated micro-drill when used for the high-speed through-hole drilling of PCBs and yields a considerable improvement in the machining quality of the drilled hole.