Today : Apr 19, 2025
U.S. News
17 April 2025

Bosch Power Tools Faces Backlash Over Plant Closures

Protests erupt as over 500 jobs are threatened by Bosch's restructuring plans

On April 16, 2025, around 600 employees gathered in Leinfelden-Echterdingen to protest against the planned closure of Bosch Power Tools plants. The protest took place during a works council meeting at the company's headquarters near Stuttgart. Bosch announced it would close two Power Tools plants in Germany, including the manufacturing facility at the headquarters and the plant in Sebnitz, Saxony. Both plants are to cease operations by 2026, affecting more than 500 jobs.

IG Metall and the works council have criticized Bosch's lack of responsibility towards employees and the potential damage to the Bosch brand. "Not only does Bosch show no responsibility towards employees, but this step also damages the Bosch brand significantly," stated Karin Solda, the works council chairperson for Power Tools at the headquarters. She pledged determined resistance, asserting, "We will fight for every job."

Bosch justifies the plant closures with increased competitive and cost pressure and declining demand. The company stated that production output has significantly decreased, which cannot be offset by existing savings programs. The affected plants produce drilling and impact hammers, as well as angle grinders, with plans to relocate production to more cost-effective locations such as Hungary.

The Sebnitz plant currently employs around 280 people, while approximately 230 employees are affected at the Leinfelden site. Bosch Power Tools, a subsidiary of the Bosch Group, reported a turnover of 5.1 billion euros in 2024. Among its 18,700 employees worldwide, about 3,000 work in Germany, primarily at the headquarters in Leinfelden-Echterdingen. Additional production sites include Ravensburg and Murrhardt.

By mid-2024, Power Tools had agreed with the works council to cut 480 jobs in central, development, and administrative areas. The board member Thomas Donato emphasized that the already initiated cost and efficiency programs are insufficient to cope with the increasing cost pressure. "The existing cost and efficiency programs are not enough to cushion the cost pressure and to strengthen our competitiveness in the long term," Donato explained.

He further acknowledged that a central issue is the significantly decreased utilization of the affected production sites, caused by declining demand. To remain economically viable, Bosch must adjust its historically grown structures and focus on fewer, more efficient locations. "This decision is very difficult for us," Donato added. "However, it must be made to secure the future viability of Bosch Power Tools sustainably." The company aims to implement the planned measures as socially compatible as possible, and discussions with employee representatives are expected to take place soon.

The announcement of the closures has sparked widespread concern and anger among employees and union representatives. Barbara Resch, head of the IG Metall in Baden-Württemberg, stated that while Bosch is under massive pressure in the current economic crisis, responding only with job cuts is the wrong approach. "This is a scandal, and we will fight it with all the means at our disposal," declared Uwe Garbe, First Plenipotentiary of IG Metall Ostsachsen.

The decision to close the plants in Leinfelden and Sebnitz is part of a larger trend within Bosch, which has been undergoing significant restructuring and job cuts across various sectors. In December, Bosch announced job reductions even in future-oriented areas such as IT and software development. The company faces increasing pressure to adapt to changing market conditions and consumer demands, leading to these drastic measures.

As the protests continue, employees are determined to make their voices heard. The sentiment among the workers is one of solidarity and resilience, as they prepare to fight for their jobs and the future of the Bosch brand. The situation remains tense as negotiations between Bosch management and employee representatives are set to begin, with many hoping for a more favorable outcome.

In summary, the planned closures of Bosch Power Tools plants in Germany have ignited significant backlash from employees and union representatives. With over 500 jobs at stake, the protests reflect a broader concern over job security in an increasingly competitive market. As Bosch navigates these challenges, the commitment of its workforce to advocate for their rights will play a crucial role in shaping the future of the company.