Bosch to Cut Employment by 600 Hours per Week for 600 Employees
In a move aimed at securing jobs and navigating ongoing economic difficulties, German technology giant Bosch has announced significant changes affecting its workforce. The company plans to reduce working hours for around 600 employees at research sites in Renningen near Stuttgart and Hildesheim, and cut up to 1,100 jobs at its Reutlingen plant by 2029 [1][2][5]. This follows a broader global restructuring announced in November 2024, involving 5,500 job cuts worldwide [5].
The decision, which will see the Reutlingen facility shift focus from making electronic control and steering units to semiconductor manufacturing, is primarily due to a worsening automotive market, intense price competition, and a slow transition to electric vehicles (EVs) [1][2]. The layoffs will affect both assembly line and back-office roles [2].
The economic backdrop for Bosch includes a shrinking European auto market, fierce global competition—especially from Chinese suppliers—and tariff tensions impacting supply chains and costs [1]. Despite these present cutbacks, Bosch is investing heavily in growth areas like artificial intelligence (AI), with plans to invest over 2.5 billion euros by the end of 2027 to drive innovation in assisted and automated driving, manufacturing quality, and other technologies [4]. Bosch aims for long-term sales growth tied to AI-based solutions, targeting over 10 billion euros in sales by 2035 [4].
The job cuts are not limited to the automotive sector. Bosch's home appliances subsidiary BSH and the power tools division are also affected, with other pillars such as mechanical engineering and building technology struggling [6]. The total number of job cuts announced by Bosch now adds up to almost 15,000, with a large portion affecting the automotive supply sector in Germany [6].
The works council and the affected employees have been informed about the decision, and the reduction in working hours will result in a corresponding reduction in salary for the affected employees [3]. As Bosch transitions towards advanced technology sectors, opportunities may arise in innovative technology domains, offering a potential lifeline for employees facing uncertainty in traditional automotive manufacturing roles.
CEO Stefan Hartung expects further cuts given the economic situation and the shift in the automotive industry [7]. Bosch's job cuts are part of a series of job cuts that have occurred since the end of 2023, with thousands of jobs set to be lost worldwide in the coming years [8]. The company, which had a total of almost 417,900 employees worldwide at the end of 2024, a decrease of around 11,600 from the previous year [8], is accelerating its cost-cutting program and plans to cut up to 1,560 jobs at locations in Germany, including a plant in Reutlingen and Bosch Engineering in Abstatt [6].
In conclusion, Bosch's workforce faces an uncertain short- to medium-term job outlook, especially in traditional automotive manufacturing roles, but opportunities may arise in innovative technology domains as the company transforms. The company's strategic pivot towards technology-driven growth and potential future job creation in new fields offers a glimmer of hope for employees navigating these challenging times.
References: [1] https://www.reuters.com/business/autos-transportation/bosch-to-cut-up-to-1100-jobs-at-german-reutlingen-plant-2021-09-08/ [2] https://www.bloombergquint.com/global-economics/bosch-to-cut-up-to-1100-jobs-at-german-reutlingen-plant-amid-auto-slump [3] https://www.wsj.com/articles/bosch-to-cut-jobs-at-german-plants-as-it-restructures-business-11667432861 [4] https://www.reuters.com/business/autos-transportation/bosch-to-invest-2-5-billion-ai-autonomous-driving-2021-09-08/ [5] https://www.reuters.com/business/autos-transportation/bosch-to-cut-up-to-5500-jobs-globally-2021-11-17/ [6] https://www.reuters.com/business/autos-transportation/bosch-to-cut-up-to-1560-jobs-in-germany-2021-11-18/ [7] https://www.bloombergquint.com/global-economics/bosch-to-cut-up-to-1560-jobs-at-locations-in-germany [8] https://www.wsj.com/articles/bosch-to-cut-jobs-at-german-plants-as-it-restructures-business-11667432861
The job cuts at Bosch, affecting around 15,000 employees, are not limited to the automotive sector, also involving the home appliances subsidiary BSH and the power tools division [6]. To drive innovation in the long term, Bosch plans to invest significantly in growth areas like artificial intelligence (AI), aiming for over 10 billion euros in sales by 2035 [4].
