Bosch, the global engineering powerhouse, has unveiled plans to slash 13,000 jobs as part of a strategic initiative to save €2.5 billion (£2.06 billion). The cuts will primarily impact the company’s mobility division in Germany, which specializes in vehicle parts and software. The decision comes in response to a stagnated market, intensified competition from industry giants like Tesla and China’s BYD, and rising costs exacerbated by former US President Donald Trump’s tariffs on EU exports.
The company identified a significant ‘cost gap’ of €2.5 billion in its automotive business, prompting a comprehensive cost-reduction strategy. In addition to workforce reductions, Bosch plans to scale back investments in production facilities and infrastructure, citing a ‘sharp decline in demand’ for its products. As of December 2024, Bosch employed 418,000 people worldwide, with the latest cuts expected to affect roles in administration, sales, development, and production across key locations in Germany, including Feuerbach, Schwieberdingen, Waiblingen, Bühl, and Homburg.
Stefan Grosch, a member of Bosch’s board of management and director of industrial relations, expressed regret over the decision, stating, ‘Regrettably, we will not be able to avoid further job cuts beyond those already communicated. This hurts us greatly, but unfortunately, there is no alternative.’ The announcement underscores the challenges facing the once-dominant German automotive industry, which has seen its market share eroded by foreign competitors.
Bosch emphasized that its UK operations would remain unaffected for now, though it would ‘continually assess’ its global operations based on customer demand and market developments. The company also highlighted the broader economic pressures, including Trump’s 15% tariff on EU exports to the US, which, while lower than tariffs imposed on other countries, has significantly increased operational costs. Bosch plans to initiate discussions with affected employees immediately as it navigates this turbulent period.