Bosch to cut up to 5,550 jobs amid auto sector challenges

Robert Bosch (NS:BOSH ) GmbH detailed plans to reduce its workforce by up to 5,550 positions. This decision comes as Germany's automotive industry faces significant hurdles, including stiff competition from more affordable Chinese competitors and a general decline in demand.

Bosch, recognized as the largest supplier of automotive components globally, has identified the need to eliminate 3,500 jobs by the end of 2027 within its cross-domain computer solutions division. This sector, responsible for intelligent driver assistance and automated driving solutions, has been particularly hit by reduced demand. Approximately half of these job reductions are expected to occur at locations within Germany.

The company also disclosed plans for job cuts at its Hildesheim plant in Germany, aiming to reduce its workforce by approximately 750 by 2032, with 600 of these cuts anticipated by the end of 2026.

Additional layoffs were announced for Bosch's steering division at its Schwaebisch Gmuend facility, situated near Stuttgart. Here, the company is looking to cut as many as 1,300 jobs between 2027 and 2030.

The response from Bosch's works council and the IG Metall union to the planned job cuts was one of clear opposition. Frank Sell, the deputy head of the works council, stated, "We will now organise our resistance to these plans at all levels."

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Source: Investing.com