Bosch to Cut Thousands of Jobs Due to Sluggish Car Demand and Slow Tech Transition
Bosch, the German automotive technology supplier, announced on Friday that it plans to cut up to 5,500 jobs in its automotive division over the coming years. The move is a response to declining global car sales, excess production capacity in the industry, and a slower-than-anticipated shift to electric vehicles and software-driven technologies.
The job reductions will primarily affect Bosch’s division focused on advanced driver assistance systems, automated driving technologies, and vehicle software. Of the 5,500 positions, approximately 3,500 are expected to be cut before 2027, with around half of those positions based in Germany. Bosch, headquartered in Gerlingen near Stuttgart, stated that the automotive sector currently faces substantial overcapacity and that demand for future technologies is growing more slowly than anticipated. Many automakers are postponing or abandoning projects in this area, the company added.
In addition to the workforce cuts in the automotive sector, Bosch will also reduce 750 jobs at a plant in Hildesheim, Germany, by 2032, with 600 of those positions gone by 2026. A facility in Schwaebisch Gmund is also expected to lose about 1,300 jobs between 2027 and 2030.
While these plans are still in the early stages, the final numbers will need to be negotiated with employee representatives. Bosch has emphasized that it will carry out the job reductions in a socially responsible manner, in line with an existing jobs agreement that protects workers in Germany from layoffs until 2027, and in some cases until 2029.
Bosch’s mobility division, which focuses on automotive products, employs around 230,000 people worldwide, part of a larger workforce of 429,000. In addition to its role as an auto industry supplier, Bosch manufactures a wide range of products, including industrial equipment, power tools, security systems, and waste-heat recovery systems.