Auto parts supplier, Robert Bosch, announced that it will cut down the working hours for nearly 10,000 employees in Germany. The largest car parts supplier in the world said that this will also mean a reduction in pay for these employees.
This announcement comes after the firm on Friday said that it would slash jobs for up to 5,550 individuals and also reduce the working hours for 450 employees, reported Reuters. This update reflects the slowdown in the German auto sector which has impacted big names such as Volkswagen and Mercedes.
The current condition of the German auto industry can be attributed to weak demand and intense competition from Chinese rivals which have managed to market cheaper vehicles.
A spokesperson for the firm on Saturday said that staff typically work on 38 or 40 hour contracts at sites around Germany and these employees will now see a reduction in their working hours to 35 hours.
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The company earlier informed that the layoffs will impact 5,500 individuals in the next few years as the auto industry tries to navigate headwinds. The company explained that stagnant sales at the global level and factory capacity exceeding sales prospects impacted the industry significantly.
Notably, nearly 3,500 of the planned job cuts will be completed before 2027. These layoffs will affect workers in the advanced driver assistance and automated driving technologies department. About half of the reductions in the workforce will impact workers 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," the company said in an official statement earlier.
However, the layoffs are still in the early stages and final numbers will be agreed upon with after discussion with employee representatives, the firm said.