Several job cuts than originally stated are being sought by supplier Bosch in light of the automobile industry’s problems. According to a corporate spokesperson, it is going to be an additional “must have for making adjustments” for at least 5,550 jobs in the upcoming years. Approximately 3,800 jobs, or greater than nearly three quarters of these, will be lost in Germany.
According to the information, the figures are plans. The discussions with staff members, which are now scheduled to start, include specific numbers. The cuts should be made as socially acceptable as possible. The agreement concluded in mid-2023, which excludes redundancies in the supplier division in Germany until the end of 2027, and in some cases even until the end of 2029, continues to apply. At the end of 2023, a good 72,000 of the approximately 134,000 Bosch employees in this country worked in this division.
Bosch Software Sector Particularly Affected
The present strategies have the greatest impact on the Cross-Domain Computation Solutions division, that’s in charge of driving automation and support programs. By the end of 2027, 3,500 jobs are to be cut worldwide, around half of them in Germany. According to the works council, this affects the Leonberg, Abstatt, Renningen and Schwieberdingen sites in Baden-Württemberg and Hildesheim in Lower Saxony.
Additionally, by 2032, 750 jobs at Bosch’s Hildesheim facility, which produces electric mobility goods, would be eliminated; a significant number of these (600) by the end of 2026. The branch that manufactures steering systems for vehicles and trucks also has budgetary strategies. At the Schwäbisch Gmünd site, up to 1,300 jobs are to be cut between 2027 and 2030, more than a third of the workforce there.
Reason for cutback plans: crisis
The supplier justifies the savings plans with the crisis in the automotive industry. “universal automobile manufacturing is projected to remain approximately 93 million units during the year, regardless of even decrease significantly comparing to the previous year,” stated Bosch. Next year, they expect only a slight recovery. There is considerable overcapacity in the industry. Competition and price pressure have also increased.
According to Bosch, manufacturers are ordering significantly fewer parts for electric cars, for example, which is leading to a surplus of staff in Hildesheim. In addition, the market for future technology is developing differently than Bosch expected: there is not as much demand for driver assistance systems and solutions for automated driving as predicted. Many such projects are currently being postponed or abandoned by manufacturers, it said.
Bosch is having trouble operating its steering division due to greater rivalry. In response, the company plans to bundle functions and reduce costs. That will enable the steering systems to be sold worldwide at affordable prices by making greater use of already-existing facilities with varying pricing schemes.