By DCB Editorial, November 25, 2024
Bosch, the world’s largest automotive supplier by revenue, plans to cut most of 5,500 jobs, including 3,800 in Germany, citing weak demand for intelligent driver-assistance systems and automated driving solutions. The company attributed the decision to significant overcapacity in the automotive industry, with final job reductions to be negotiated with labor representatives. The IG Metall union and the company’s works council oppose the layoffs, with works council deputy head Frank Sell pledging organized resistance to the plans.
Bosch plans to cut 750 jobs at its Hildesheim plant by 2032, with 600 eliminated by 2026, and up to 1,300 positions at its Schwaebisch Gmuend steering division between 2027 and 2030. The German automotive sector slowdown has also impacted Volkswagen, Mercedes-Benz, and Ford, with disputes and cost-cutting measures leading to significant job cuts. Other suppliers, including Continental and ZF Friedrichshafen, are similarly reducing employment as demand weakens.
Bosch, a leading automotive supplier with components in nearly all of the 1.5 billion vehicles worldwide, is struggling with declining demand for new cars despite heavy investments in new technologies. European car production remains below its pre-pandemic peak of 16 million vehicles, prompting Bosch and other industry players to downsize operations in anticipation of permanently lower demand. The company predicts global car production may decline this year, with only modest recovery expected by 2025.
