Bosch Plans to Cut Approximately 13,000 Jobs Amid Industry Challenges

The automotive supplier Bosch has announced plans to eliminate around 13,000 jobs, primarily within its Mobility division in Germany. This decision is part of a broader strategy to reduce costs and enhance competitiveness in a challenging market environment. The company aims to complete these layoffs by the end of 2030.

According to the announcement from the Gerlingen-based firm, significant cuts are expected at various locations, including Stuttgart-Feuerbach, Schwieberdingen, Waiblingen, and Bühl/Bühlertal in Baden-Württemberg, as well as in Homburg, Saarland.

Stefan Grosch, Bosch's Managing Director and Director of Labor, emphasized the urgency of improving the company's competitive stance in the mobility sector and reiterated the necessity of further cost reductions. He acknowledged the painful nature of job cuts but underscored that they are unavoidable under current circumstances.

The announcement has sparked outrage from the IG Metall union, which represents many workers in the automotive sector. Frank Sell, the head of the Works Council for the Mobility sector, expressed strong opposition to such a significant workforce reduction, especially without guarantees for job security at German sites. He warned that such actions could undermine trust and lead to severe social consequences in various regions.

The automotive industry has faced considerable turmoil recently, impacting major suppliers like Bosch. The company had already communicated plans to reduce its workforce by 9,000 positions since late 2023. Earlier in July, Bosch had announced the elimination of an additional 1,500 jobs across various German sites.

In interviews, Bosch's mobility leadership highlighted the necessity of significant cost savings, with yearly expenditures in the Mobility sector expected to decrease by EUR2.5 billion. Grosch indicated that the company aims to bridge the cost gap in the coming years, with a target to resolve it by 2030.

In the previous year, Bosch's mobility division experienced a slight revenue decline of 0.7%, totaling EUR55.8 billion. For the current fiscal year, the company anticipates modest growth. The Mobility division accounts for over 60% of Bosch's overall revenue, which exceeds EUR90 billion.

As of the end of 2024, Bosch employed approximately 417,900 people globally, which reflects a reduction of about 11,600 employees compared to the previous year. In Germany, the workforce decreased by over 4,500, resulting in a total of more than 129,600 employees, a decline of 3.4%. The Mobility division in Germany employed over 70,000 individuals at the time of the announcement.