Why are Bosch and Germany suffering job losses despite going electric?
Bosch has announced it may cut more jobs at its German plants than initially expected. The company’s car supplier division estimates that between 8,000 and 10,000 positions are at risk, according to Frank Sell, vice chairman of Bosch’s supervisory board, as reported by Reuters.
Employee representatives and unions are preparing an action plan for 2025, which could include strikes, Sell added. Meanwhile, a Bosch spokesperson told CNN that the company anticipates reducing its global workforce by 8,250 jobs in the coming years.
Moreover, Bosch stated, “The challenging economic environment and ongoing transformation in the automotive industry are presenting us—like other companies—with significant challenges. It is important for us to remain competitive under these conditions.”
A few weeks ago, Bosch revealed plans to cut 5,500 jobs over the next several years, citing stagnant car demand and the shift to new technologies. The European automotive sector is grappling with multiple pressures, including weak demand, high production costs, growing competition from Chinese manufacturers, and the sluggish transition to electric vehicles.
Bosch, which employs approximately 135,000 people in Germany, also did not immediately respond to a request for comment from Euronews Business. The broader European car market is struggling, with many automakers announcing cost-cutting initiatives to navigate these challenges.
On top of that, high production costs however, particularly in Germany, continue to hinder profitability, while Chinese competitors are further squeezing already-thin margins. Volkswagen is also facing turmoil, with thousands of workers taking industrial action as unions clash with management over potential plant closures, job reductions, and pay cuts.
This labor unrest underscores the difficulties faced by European carmakers as they attempt to adapt to the evolving market dynamics. The automotive industry in Europe is at a crossroads, balancing the need to address immediate financial pressures with long-term goals of electrification and innovation.
Bosch’s announcement is the latest indication of the sector’s struggles, as companies confront economic uncertainty and increasing competition in a rapidly changing landscape. So just how much trouble is Bosch and Germany in and is there anything that can be done to stop either from drowning?
