Bosch plans to reduce up to 10,000 jobs amid economic slowdown and automotive sector challenges, signaling deeper cuts following previous workforce reductions.
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| Bosch reveals plans to cut thousands of jobs as the company faces economic pressure and the transition to electric vehicles in the automotive sector. |
Stuttgart, Germany — March 4, 2025:
Bosch, the world’s largest automotive supplier by revenue, is set to implement further job cuts as it navigates economic turbulence and a downturn in the German automotive sector. According to a report from Stuttgarter Zeitung, the company could reduce its workforce by up to 10,000 positions, compounding previous workforce reductions. This follows Bosch’s announcement in November that it would slash 5,500 jobs over the next several years.
CEO Stefan Hartung attributed the decision to a mix of challenges, including a sluggish global economy, stagnating demand in the automotive sector, heightened competition from China, and consumer uncertainty. He also pointed to the slow transition from combustion engines to electric vehicles, which is placing additional strain on the company’s operations.
As Bosch moves forward with restructuring, Hartung emphasized that the shift to electric mobility will inevitably result in significant job losses, even though the pace of the transition has allowed some combustion engine production to continue operating at full capacity longer than anticipated. Many employees, he added, are expected to retire before their roles are phased out entirely.
Bosch’s decision to reduce its workforce comes amid mounting difficulties in the German automotive industry, which has been struggling with rising costs and competition from international markets. Preliminary estimates show that the company’s earnings before interest and taxes (EBIT) plummeted by a third in 2024, totaling €3.2 billion.
This move signals the continued pressure on Germany’s automotive sector, which is a key pillar of its manufacturing economy. The sector’s troubles are contributing to concerns over the stability of the broader German economy, which is forecast to enter its third consecutive year of contraction in 2025, according to the Handelsblatt Research Institute.
Bosch's planned layoffs reflect a larger trend of cost-cutting and restructuring within the automotive industry, as companies strive to adapt to evolving market conditions and the ongoing shift towards electric mobility.