Bosch plans to lay off more than 8,000 employees worldwide

German industrial giant Bosch has announced that it will lay off around 8,000 employees worldwide over the next few years, reports CNN. The figure represents nearly 2% of the company’s global workforce of more than 429,000, according to data from the end of 2023. The cuts will mainly affect the company’s auto parts manufacturing division, which supplies automakers around the world.

The company’s decision is part of a broader trend of mass layoffs in the German automotive industry, which is struggling with increasing competition in the automotive sector from China, high labour costs and taxes, and rising energy costs. In addition to the job cuts, Bosch announced in November that it would cut working hours and wages for about 10,000 employees in Germany. Workers on 38- and 40-hour contracts are to switch to a 35-hour week.

The largest number of redundancies will affect Bosch sites in Germany:

• Gerlingen (near Stuttgart): 3,500 jobs are to be cut by the end of 2027.
• Hildesheim (near Hanover): 750 jobs will be lost by the end of 2032.
• Schwaebisch Gmund: up to 1,300 jobs will be lost between 2027 and 2030.

The layoffs at Bosch are another sign of the difficulties facing the German economy. Other industrial groups have announced similar measures. Volkswagen: Recent strikes by workers were in response to the lack of job protection guarantees and possible plant closures in Germany. Thyssenkrupp: The steelmaker announced that it would cut 11,000 jobs by the end of the decade, around 40% of its workforce.

The decision is partly due to growing competition from cheap steel imports from Asia. ZF, Continental and Webasto: These companies have also announced cuts in response to changing market conditions and cost pressures.

The automotive sector, a pillar of the German economy, is currently facing profound changes. Companies are being forced to adapt to global trends such as electrification, automation and increasing competition in international markets. The mass layoffs underscore the difficulties that these changes pose for both companies and employees.

Bosch, like other companies, is underlining the need to make tough decisions in order to remain competitive in a rapidly changing market environment.