Separately, German automotive supplier Bosch announced plans to axe 13,000 jobs, as part of a company-wide strategy to save €2.5 billion (£2.06 billion). This announcement comes at a time when the German car industry is reeling from an inversion of fortune. First, intensified competition from foreign companies is eating away at its market share. The cuts will largely be felt in administration, sales, development and production jobs. Bosch sites affected by the walkout include Feuerbach, Schwieberdingen, Waiblingen, Bühl and Homburg locations.
Bosch’s mobility division, which boasts vehicles parts and software, has seen major red ink. Due to the actions described above, the company has announced layoffs to its employees. Now, the company’s mobility arm has struggled with a slowing market and increasing pressure from competitors, which has led to growing concerns. As of December 2023, Bosch has a workforce of some 421,000 worldwide. These recent layoffs indicate a company under duress, unable to maintain its clearly fluctuating employment levels.
Neither will Stefan Grosch, a longtime member of Bosch’s board of management, whose experiences and perspectives are invaluable. He said these are the painful, necessary decisions the company wants to focus on.
“Regrettably, we will not be able to avoid further job cuts beyond those already communicated. This hurts us greatly, but unfortunately there is no alternative.” – Stefan Grosch
As if all of this wasn’t enough, Bosch’s situation has been severely impacted by the geopolitical climate, especially United States tariffs. Former President Donald Trump retaliated by slapping a 15% tariff on EU exports to the US. The company has faced rising expenses since making this costly decision. These tariffs have deepened the loss creation throughout Bosch’s mobility division, forcing a reconsideration of what’s required to operate.
As international rivals like China’s BYD and the United States’ Tesla increasingly disrupt Bosch’s traditional markets with advanced new technologies, the company’s business model is slowly sealing its fate. The choice to cut positions reflects the broader trends affecting Bosch and the rest of the German automotive industry. This change signals the urgent pressures the industry is experiencing at this very moment.