Reduced work hours and decreased wages for hundreds of Bosch employees
In a recent announcement, technology group Bosch has revealed plans to reduce working hours for approximately 600 employees at its research sites in Renningen and Hildesheim, starting from January 1, 2026. This move comes in response to the tight economic situation, delayed market developments in new technology fields, and changed capacity requirements.
The reduced working hours will see a shift from the current 38 or 40 hours to the collectively agreed weekly working time of 35 hours. This adjustment is not a form of short-time work in the classical sense but an adaptation to the collectively agreed regular working hours. Bosch states that this measure is also intended to help secure jobs.
It is important to note that unlike short-time work, this is not a case of underemployment. The company is using this regulation to reduce personnel costs, a strategy it has employed before to respond to economic challenges. As early as 2024, the company reduced the weekly working hours for around 10,000 employees at various sites.
The company's recent job cuts primarily concern its automotive division in Germany, specifically at the Reutlingen plant, where 1,100 jobs (about 10% of the workforce there) are being cut due to weakening demand for traditional steering systems and uncompetitive manufacturing conditions. This reflects broader challenges in the automotive supplier industry amid slower-than-expected electric vehicle (EV) adoption in Europe and increased global competition.
Bosch plans to refocus the Reutlingen site toward semiconductor manufacturing, which it views as a strategic growth area. The job cuts affect both production and administrative roles, though the company has not publicly detailed whether layoffs will be compulsory or if measures like redeployment or reskilling will be offered to displaced employees.
The decision to reduce working hours only affects the Central Research department at the German sites in Renningen and Hildesheim. The future impact on employees may include job losses or transitions to new roles within Bosch, especially in emerging fields like semiconductor production. However, specific plans for employee support remain unclear.
For Bosch's research sites, the pivot to semiconductor manufacturing suggests a strategic redirection of investment and innovation focus away from some traditional automotive component lines toward technology critical for the future of mobility and electronics, potentially redefining the company’s research priorities.
This move by Bosch reflects wider challenges in the German automotive supply sector, with firms like Schaeffler, Continental, and Porsche also facing workforce reductions attributed to systemic challenges such as declining sales and export difficulties, notably in China.
In summary, Bosch's decision to reduce working hours and implement job cuts is a response to economic pressures and changing market conditions, particularly in the automotive industry. The company's strategic shift towards semiconductor manufacturing signals a major restructuring in its product and research focus, with potential implications for its workforce and research priorities.
- Amid the economic strain and altered business conditions, Bosch is utilizing the adaptation to regular working hours to lower personnel costs, a tactic previously employed in response to economic hardships.
- The financial industry and business sector will closely watch Bosch's strategic adjustments, particularly its focus on semiconductor manufacturing, as it signifies a significant shift in the company's investment and innovation priorities, reflecting broader trends within the technology industry.
