Bosch to Cut Over 5,000 Jobs in Latest Blow to German Car Industry

Bosch has announced plans to cut up to 5,500 jobs, citing struggles with slowing electric vehicle (EV) sales and intensifying competition from Chinese imports.

This marks yet another challenge for the European car industry, following significant layoffs announced recently by Volkswagen and Ford.

Bosch, the world's largest car parts supplier, is facing reduced demand for its driver assistance and automated driving solutions.

The slower-than-anticipated shift to electric and software-controlled vehicles is also contributing to the downsizing, along with broader economic challenges in Germany, where demand for new cars has declined amid a sluggish economy that narrowly avoided recession.

Around half of the planned reductions will occur in Germany, affecting three key locations:

• • Gerlingen (near Stuttgart): A reduction of 3,500 roles by 2027, primarily in car software and advanced driver assistance technology development.
  • Hildesheim (near Hanover): 750 job cuts by 2032.
  • Schwaebisch Gmund: 1,300 positions phased out between 2027 and 2030.

• Overall Timeline: The job cuts are set to be carried out over eight years, with Bosch emphasizing a "socially responsible" approach in collaboration with employee representatives.

Despite the reductions, Bosch reaffirmed commitments to its existing no-layoff agreement in Germany, which protects many employees until 2027, with some coverage extending to 2029.

The announcement comes as the European car industry grapples with competitive pressures from cheaper, Chinese-made EVs.

These imports are complicating efforts by European manufacturers to maintain cost competitiveness while meeting government EV targets:

• Volkswagen: Recently announced plans to shutter at least three German factories, alongside downsizing efforts.
• Ford: Earlier this week, revealed plans to cut 4,000 jobs across Europe, including 800 in the UK, due to disappointing EV sales and fears of government-imposed fines for missing emissions targets.

Bosch’s decision underscores the profound challenges facing Europe’s automotive sector as it transitions to electrification.

With weakened domestic demand and fierce international competition, manufacturers and suppliers alike are navigating a complex and uncertain path toward sustainable operations.
Source: Sky news
Image: CBT News