German industrial giant Bosch plans to let go of 10,000 individuals and this measure has created an ‘absolutely unbearable’ atmosphere at the company, a senior executive said.
A board member of the company said that recent plans to cut 10,000 jobs has resulted in a difficult working environment, reported Reuters. Speaking with the news agency, Frank Sell, member of Bosch’s supervisory board and deputy chairman of the group’s works council in its Mobility Services division said that these job cuts could impact anywhere between 8,000-10,000 jobs.
Earlier in November, Bosch warned that a ‘profound transformation’ in the car market has led the firm to undertake some difficult cost-cutting measures. The german industrial giant depends on the car industry which has been going through a difficult time.
Bosch supplier carmakers with brakes and spark plugs. These manufacturers has been facing a decline in demand, slowdown in EV uptake, and intensifying competition from China. This has resulted in an impact on demand at the company.
The German economy has been suffering for some time now. This decline became more prominent after more than 60,000 job cuts announcements were made from German Fortune 500 firms in the year, reported Fortune.
Notably, Thyssenkrupp, another giant in the German economy, also announced that it plans to let go of 11,000 steel workers, which account for 40 per cent of the employees in the division. This decision was prompted by increasing competition from China.
Carsten Brzeski, head of global macro, ING, in a note last month said, “In a world where China has become the “new Germany” – at least in manufacturing – Germany’s old macro business model of cheap energy and easily accessible large export markets is no longer working.”
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Recently, Bosch also revealed that it will reduce working hours for 450 employees, resulting in creating an unwanted four-day work week.