Bosch, the world’s largest supplier of automotive parts, has warned that weak demand, fierce competition from China, and the slow shift to electric vehicles (EVs) could lead to significant job cuts.
The company’s car division is now expecting to cut between 8,000 and 10,000 jobs in its German plants, higher than previously forecast. Frank Sell, vice chairman of Bosch’s supervisory board, stated this in comments to Reuters.
Employee representatives and unions are preparing a plan of action for 2025, which could include strikes, according to Sell.
A spokesperson for Bosch told CNN that the company plans to reduce its global workforce by approximately 8,250 jobs in the coming years, citing the challenging economic environment and the ongoing transformation within the automotive industry. Bosch emphasized the need to stay competitive in this difficult landscape.
Just a few weeks ago, Bosch had already announced plans to cut around 5,500 jobs due to stagnant car demand and the introduction of new technologies.
The European automotive market is facing multiple issues, including sluggish demand, high production costs, competition from Chinese manufacturers, and the gradual shift to electric vehicles.
Bosch employs approximately 135,000 people in Germany. The company did not immediately respond to Euronews Business’ request for comment.
European car manufacturers are implementing cost-cutting measures to navigate these challenges. Despite efforts to reduce costs, production expenses remain high, particularly in Germany, while competition from China is eroding profit margins. At the same time, the transition to electric vehicles is progressing slowly.
Volkswagen is also in the spotlight as unions engage in industrial action to prevent large-scale plant closures and avoid further job and wage cuts.
