Bosch has announced plans to cut 13,000 jobs as part of an effort to save €2.5 billion (£2.06 billion). This decision primarily impacts its mobility division in Germany, which provides vehicle parts and software. The company cites a stagnant market and heightened competition from firms such as Tesla and China’s BYD as major factors contributing to the job losses.
In addition to job reductions, Bosch aims to decrease investments in production facilities and buildings, attributing this strategy to a significant decline in demand for its products. As of December 2024, Bosch employs approximately 418,000 individuals globally. The company has stated that no jobs in the UK will be affected by this announcement, although it will continuously review its operations based on customer demand and market developments.
Bosch acknowledged the continuing challenges in the global vehicle market, which it describes as experiencing subdued development. Stefan Grosch, a member of the Bosch board of management, has indicated that further job cuts appear unavoidable and expressed regret over the necessity of these measures. Positions likely to be impacted include roles in administration, sales, development, and production, particularly in locations such as Feuerbach, Schwieberdingen, Waiblingen, Bühl, and Homburg.
This announcement comes amid a general decline in the German automotive industry, which faces increasing competition from international players. Bosch also highlighted the impact of tariffs imposed by former U.S. President Donald Trump on EU exports to the United States as a factor in its decision-making. While these tariffs are not among the highest, Bosch pointed out that the current global environment and rising costs have made it untenable to maintain its existing workforce. The company plans to start discussions with affected employees immediately.
Source: https://www.bbc.com/news/articles/cx275251xzro?at_medium=RSS&at_campaign=rss