Reduced workforce in the Community due to steps taken by the Commission.
In a series of measures aimed at adapting to long-term structural changes in the automotive industry, Bosch has announced plans to cut up to 1,100 jobs in Germany by 2029, primarily at its Reutlingen manufacturing plant. This decision is part of an ongoing restructuring effort driven by challenges in the European automotive industry.
The key factors influencing this decision include economic and industry challenges, strategic shifts in production, and broader market pressures. Tougher competition, price pressure, rising costs, and declining sales caused by delays in customers' transition to electric vehicles (EVs) are among the economic and industry challenges facing Bosch.
To address these challenges, Bosch will reorganize its Reutlingen plant by reducing production of electronic control units (gearbox management systems) which is no longer competitive due to fierce price competition from new entrants. Instead, the company will refocus on semiconductor manufacturing to secure the plant’s future.
These cuts add to about 7,000 job reductions announced since 2023, affecting multiple Bosch divisions such as automotive, home appliances, and power tools. The company's home appliances subsidiary BSH and power tools division are also affected by the job cuts.
In addition to job cuts, Bosch is implementing a cost-saving programme, which includes reducing the working hours of approximately 600 employees at research sites in Renningen near Stuttgart and Hildesheim. The affected employees currently work 38 to 40 hours per week, but this will be reduced to 35 hours per week starting January 1, 2026. This measure aims to secure jobs for the affected employees.
The reduction in working hours will also result in a corresponding reduction in salary for the affected employees. Thousands of jobs are set to be cut worldwide in the coming years, reflecting broader pressure on German and European car manufacturers and suppliers from global market shifts and tariff challenges.
Bosch CEO Stefan Hartung has predicted further cuts given the economic situation and the shift in the automotive industry. The company had a total of almost 417,900 employees worldwide at the end of 2024, 11,600 fewer than a year earlier. In Germany, the number of employees fell by over 4,500.
The news was confirmed by a company spokesperson upon request, following reports by "Stuttgarter Zeitung" and "Stuttgarter Nachrichten". Many consumers are holding back on purchasing various devices due to economic conditions, which is contributing to the difficult economic situation facing Bosch.
Other sectors such as mechanical engineering and building technology are also struggling. The automotive supply sector in Germany is a significant part of the announced job cuts. Bosch's decision to reduce working hours is due to the current difficult economic situation and delayed market expectations in various new technology fields.
The works council and the affected employees have been informed about the changes. The measure is designed to help secure jobs for the affected employees in the long term, despite the ongoing challenges facing the automotive industry.
Economic and social policy changes are underway at Bosch, with the company addressing challenges in its industry through restructuring. This involves strategic shifts in production, cost-saving measures, and a focus on competitive areas like semiconductor manufacturing and technology. Finances play a significant role in these decisions, as Bosch navigates tough competition, price pressure, rising costs, and declining sales, particularly in the transition to electric vehicles.
