Background on Bosch and its Relevance
Bosch, the world’s leading automotive equipment manufacturer, has announced plans to eliminate 13,000 jobs in Germany by 2030. This decision stems from the increasing competition posed by Chinese manufacturers.
Scope and Impact of the Job Cuts
Approximately 3% of Bosch’s global workforce is affected by this plan, which primarily targets the automotive division (“Mobility”). The division must cut costs by €2.5 billion annually to maintain competitiveness.
- The job cuts represent around 10% of Bosch’s workforce in Germany.
- Several factories will be impacted, including a closure in Waiblingen near the company’s headquarters in Stuttgart, southwestern Germany.
Bosch had previously announced 9,000 job reductions starting from 2024, with half of those already implemented.
Reactions from Labor Unions
The IG Metall union acknowledges the challenges but expresses “categorical rejection” to a reduction of this “historical magnitude,” without ensuring the safeguarding of German sites. Frank Sell, head of the Mobility division’s works council, argues that these funds should be invested in sustainable product and business model development instead.
Bosch’s Perspective
Stefan Grosch, Bosch’s human resources director, highlights the “enormous challenges” faced by the company due to stagnant global automotive production and European criticism of slow progress in electric mobility and autonomous driving.
- The motorizations division, significantly affected, faces substantial overcapacity and intense price pressure, especially from Asian markets, according to Thomas Pauer.
- The electric propulsion sector also grapples with overcapacity and faces slowdowns due to uncertainty surrounding the European phase-out of thermal engines by 2035, as per Marco Zehe.
Despite these measures, Germany and Europe remain crucial for Bosch, as stated by Grosch.
Broader Industry Trends
Other major German manufacturers, including Continental, ZF, and Schaeffler, have also announced thousands of job cuts in recent months. Volkswagen anticipates 35,000 job losses in Germany, while Daimler Truck plans to reduce 5,000 positions.
Key Questions and Answers
- What is Bosch and why is this news significant? Bosch is a global leader in automotive equipment manufacturing. This news is significant as it indicates the company’s response to intensifying competition from Chinese manufacturers.
- How many jobs will be cut, and when? Bosch plans to eliminate 13,000 jobs in Germany by 2030.
- Which divisions are most affected? The automotive division (“Mobility”) is primarily targeted, with substantial overcapacity and price pressure issues.
- What are the broader industry trends? German automotive manufacturers, including Bosch, Continental, ZF, Schaeffler, Volkswagen, and Daimler Truck, are collectively reducing their workforces in response to global challenges such as stagnant production, rising costs, and increased competition.
