Germany’s Bosch to Cut 5,500 Jobs Amid Auto Industry Struggles
The auto industry is facing major challenges, and Bosch, one of its key players, is feeling the pressure. The famed technology and services company, Robert Bosch GmbH, announced plans to slash its automotive division workforce by up to 5,500 jobs over the next few years. This decision reflects the broader troubles affecting the German and global auto sectors.
According to the company, stagnation in global auto sales has played a significant role. They also pointed to excessive factory capacity relative to weak sales prospects. Bosch, along with many automakers, has embarked on the ambitious transition to electric, software-controlled vehicles, yet this transition has been slower than anticipated.
Interestingly, Bosch’s announcement came just two days after Ford Motor Co revealed its own intentions to reduce its workforce by 4,000 positions across Europe. Meanwhile, workers at Volkswagen are sounding alarms about potential factory closures, with management reportedly considering shutting down as many as three plants within Germany. Adding to the turmoil, Stellantis, formed through the merger of PSA Peugeot and Fiat Chrysler Automobiles, recorded a staggering 27% drop in revenue for its latest quarter.
Auto sales overall have simmered down this year throughout Europe, largely due to inflation, which has turned consumers cautious about spending. Automakers have invested billions of dollars pushing electric vehicles out of the doors, only to find the market for them growing at a snail's pace, especially with the influx of cheaper alternatives from Chinese brands.
German policies have compounded these issues. The government abruptly canceled purchase incentives for electric vehicles at the end of last year, triggering a notable 27% decline in electric car sales over the first nine months of 2024. Such developments indicate a challenging road for car manufacturers, including Bosch.
Of the 5,500 job cuts, roughy 3,500 will occur before the end of 2027, targeting areas related to advanced driver assistance programs, automated driving technologies, and centralized vehicle software—critical components for future vehicle developments. Bosch stated approximately half of these cuts would take place within Germany itself.
“The auto industry has significant overcapacities,” Bosch explained. “At the moment, many projects related to future technologies are being put off or abandoned by automakers.”
The situation is dire not just for Bosch. Other job cuts include 750 positions at the Hildesheim plant slated for closure by the end of 2032, with 600 of those lost by the end of 2026. The Schwaebisch Gmund plant faces foreseeable reductions as well, anticipating 1,300 job losses from 2027 to 2030.
While these cuts are still under consideration and details will depend on discussions with employee representatives, Bosch emphasized pledging to approach the cuts socially responsibly. Final figures will require agreement before they are set to take effect.
It’s worth noting Bosch is not solely reliant on its mobility division, which employs around 230,000 of its total workforce of approximately 429,000 globally. The company engages across diverse sectors, from industrial technology to building equipment and software services. Nevertheless, the pressures on its automotive division highlight serious challenges within the sector as it evolves.
Within the broad spectrum of car manufacturing, most vehicles contain components sourced from multiple suppliers, making decisions like Bosch’s just one part of the larger puzzle impacting the auto industry.
The future still remains uncertain as Bosch scrambles to adjust to these changes, reflective of trends throughout the industry. With market dynamics shifting rapidly—especially with the competition posed by newer, cheaper electric models—the actions taken by major players like Bosch and Ford could signal significant shifts within the automotive manufacturing sector.
