Job Reductions Due to Overcapacity and Slow EV Transition
Bosch, the global auto technology supplier, has announced plans to cut 5,500 jobs in its automotive division over the next few years. This decision comes as global car sales stagnate, manufacturing overcapacity grows, and the shift to electric vehicles (EVs) and software-controlled cars progresses more slowly than expected. Bosch cited these industry-wide challenges as key reasons for the job reductions, reflecting broader difficulties within both German and global automotive markets.
Impact on Bosch’s Workforce and Facilities
The job cuts will primarily affect employees involved in advanced driver assistance, automated driving technologies, and vehicle software development. Of the 5,500 planned job cuts, 3,500 positions will be eliminated by the end of 2027, with nearly half of them occurring in Germany. Additionally, Bosch will close or downsize multiple plants, including Hildesheim (750 jobs) and Schwaebisch Gmund (1,300 jobs), extending into the late 2020s. The company emphasized that these reductions address both overcapacity in the auto sector and slower-than-expected advancements in future vehicle technologies.
Social Responsibility in Workforce Adjustments
Despite the planned job reductions, Bosch is committed to handling layoffs responsibly and in accordance with agreements with employee representatives. A “jobs pact” guarantees no forced layoffs in Germany until 2027, except in specific cases. While adjusting to automotive market challenges, Bosch remains invested in its mobility division, which employs 230,000 people worldwide. The company continues to produce key EV transition components, including driver assistance systems, automated driving solutions, and vehicle software.
Decline in Auto Market and Project Delays
Bosch’s decision reflects a wider trend in the automotive industry, where EV-related projects are delayed or canceled due to slow market growth. Automakers are scaling back production, reducing demand for Bosch’s advanced components. Moving forward, Bosch plans to focus on core competencies while adapting to the evolving global automotive landscape. The company will continue adjusting its business strategies to navigate ongoing market uncertainties and technological shifts.
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