German automotive supplier Bosch has announced plans to lay off 5,000 employees, with 3,800 of the job cuts to be made in Germany. The move is part of the company’s efforts to reduce costs and stay competitive in the international market.
According to Bosch, the layoffs are necessary due to the stagnation in the global vehicle market, which is expected to produce around 93 million units this year, a slight decline from the previous year. The company also pointed to the shift towards electric vehicles, which requires significantly fewer parts and is less labor-intensive.
Bosch’s manager, Stephan Hölzl, stated that the company must adapt its structures to the changing market environment and reduce costs sustainably to strengthen its competitiveness. The firm has already made significant investments in new technologies and plans to cut up to 1,300 jobs between 2027 and 2030 at its division that makes steering systems for cars and trucks.
The planned layoffs have been met with resistance from workers’ representatives, with the head of the workers’ council for Bosch’s automotive division in Germany, Frank Sell, calling the move a “slap in the face”. The crisis in the German auto industry has also hit other manufacturers, including Volkswagen, ZF, Continental, and Webasto, which have all announced layoffs and plant closures.
Bosch CEO Stefan Hartung
The European Union’s decision to increase tariffs on Chinese-imported electric vehicles to as much as 45.3% has also added to the pressure on German automakers. As the industry continues to evolve, it remains to be seen how companies like Bosch will adapt to the changing market environment and what impact the layoffs will have on the workforce.
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