Job cuts loom as Bosch aims to save billions by 2030
In a recent announcement, Bosch, one of the top automotive suppliers, revealed plans to make significant savings of 2.5 billion euros annually due to the ongoing crisis in the automotive industry. The company, based in Gerlingen near Stuttgart, has already cut around 9,000 jobs, and thousands more are at risk.
The cost-saving measures include increasing productivity and making necessary decisions regarding these reductions this year. Discussions with employee representatives are expected to follow. The savings will primarily affect German locations, and further job cuts are expected.
Despite a stagnating global vehicle production, weak demand, and delays in electrification and automated driving, Bosch continues to supply manufacturers with various systems, including powertrains, safety systems, steering and braking systems, sensors, high-performance computers, and software.
Bosch expects growth in the supplier division, with a revenue increase of slightly less than 2% this year. The mobility division of Bosch is also expected to grow despite the ongoing crisis in the automotive industry.
The agreement that excludes dismissals due to operational reasons in Germany will be upheld until the end of 2027. However, the works council of the supplier division at Bosch is demanding more transparency from management regarding the renewed cost-saving announcements.
The chairman of the works council, Frank Sell, has stated that they expect the management to be specific about their plans. The management had not previously specified a precise savings target. The job reduction programs at Bosch have been ongoing since the end of 2023, particularly in the supplier sector.
In a bid to address employee concerns, the management is expected to show the employees the future of the division in Germany and develop solutions together with the works councils. The company also plans to make savings on material and energy costs.
The IAA mobility show was the platform for Bosch's recent announcement about growth expectations in the supplier division. Bosch, potentially ranking among the top 20 revenue strongest in 2024/25, aims to reduce the cost gap significantly in the coming years and close it by 2030 at the latest.
Thousands of jobs are expected to be lost worldwide, many in Germany. Despite earlier job cuts, Bosch is planning to cut an additional 5,550 jobs worldwide. The works council has emphasised the need for the management to be transparent about their plans to avoid uncertainty among employees.
