Automotive, cuts also at Bosch: 5,500 jobs. The crisis worsens
The works council and IG Metall union expressed firm opposition. 'We will organise our resistance at all levels'
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Key points
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Robert Bosch, the world's leading supplier of components for automobiles, has announced plans to cut up to 5,500 jobs (3,800 in Germany), signalling further critical issues for the German automotive sector, already under pressure from price competition from Chinese manufacturers and falling demand.
The Cross-Domain Computing Solutions division, responsible among other things for driver assistance and automation systems, is the hardest hit: 3,500 jobs will be lost by the end of 2027, about half of them in Germany.
But there are also planned cuts in the electromobility area, where around 750 posts will be deleted by 2032. Consequences are also expected for the division producing steering systems for cars and trucks: between 2027 and 2030 up to 1,300 posts, i.e. more than a third of the staff. The employees of the world's leading component maker number just under 430,000 on a global scale.
The 10,000-strong plan at the beginning of the year
.The Bosch works council and the metalworkers' union IG Metall declared firm opposition. 'We will organise our resistance against these cuts, at every level,' said Frank Sell, vice-president of the works council. Earlier this year, Bosch had already outlined a broader restructuring effort that envisaged a reductionof up to 10,000 jobs over the course of the decade. The plan was aimed at addressing the challenges of the automotive sector and adapting to changing market conditions. Which have since deteriorated. The latest job cuts focus on specific divisions.
The supplier, which is headquartered in Gerlingen, near Stuttgart, also justifies the savings plans by the lower than expected demand for cars, especially electric cars (-26.6 per cent sales in Germany this year). 'Global vehicle production will stagnate at around 93 million units in 2024, if not decrease slightly compared to the previous year,' the company said. At best, the forecast is, there could be a slight recovery in 2025. Moody's sees it not before the second half. According to Bosch, a giant that in 2023 recorded revenues of EUR 91 billion (+8%) and Ebit of EUR 4.8 billion, there remains, however, considerable overcapacity in the sector.
