German firm Bosch on Friday announced that it aimed to cut down nearly 5,500 jobs in the next few years as the auto industry continues to suffer headwinds. The technology and services firm said that it planned to reduce workers in its automotive division in the coming years.
The firm attributed the latest layoffs to global auto sales which have become stagnant and factory capacity which has exceeded sales prospects in the auto industry, reported Euronews. The auto technology supplier said that the transition to electric-powered, software controlled vehicles has also been slower than expectations and this has impacted the auto industry.
About 3,500 of the planned job cuts will take place before 2027 end and will impact the segments of the firm that develop advanced driver assistance and automated driving technologies, along with centralised vehicle software, Bosch noted.
The firm, headquartered in Gerlingen near Stuttgart, informed that half of the layoffs will be across Germany. “The auto industry has significant overcapacities. In addition, the market for future technologies is not developing as originally expected ... At the moment, many projects in this business area are being put off or abandoned by automakers,” Bosch noted in an official statement.
Additionally, 750 jobs will be impacted at a plant in Hildesheim, Germany by 2032 end, while 600 of the job reductions will take place by 2026 end. The firm informed that about 1,300 workers will be impacted at a plant in Schwaebisch Gmund between 2027 and 2030.
The job cuts are still in the planning stage and the final numbers will need to be agreed upon with employee representatives and executed in a socially responsible way, the firm explained.
Notably, Bosch employs about 230,000 people in its mobility division, out of an overall workforce of 429,000. Apart from working as an auto industry supplier, the company also makes factory and building equipment and software across products such as waste-heat recovery systems, power tools, industrial boilers, and video security systems.