Bosch to cut 5,500 jobs, reduce hours for 10,000 employees amid auto industry slump

What’s going on at Bosch?

Bosch, the world’s largest automotive supplier by revenue, has announced plans to cut 5,500 jobs globally and reduce working hours for an additional 10,000 employees as part of a strategic response to declining demand for auto parts and ongoing challenges in the automotive sector, according to Reuters.

Details of workforce adjustments

Job reductions

Global Cuts: Bosch will eliminate 5,500 jobs, with 3,500 reductions slated to occur by 2027, primarily in Germany.

• Plant-Specific Layoffs:
  • Hildesheim Plant: 750 jobs by 2032, including 600 by 2026.
  • Schwaebisch Gmuend Plant: 1,300 jobs between 2027 and 2030.
• Areas impacted include advanced driver assistance systems, automated driving technologies, and centralized vehicle software.

Reduced working hours

• Starting in March, 10,000 employees will have their workweek shortened from 38–40 hours to 35 hours, resulting in pay cuts of approximately 12.5%.
• Initial implementation will occur at Bosch’s headquarters in Gerlingen, Germany, with similar measures planned for Schwaebisch Gmuend and Schwieberdingen.

Official statements and context

Bosch attributes the workforce adjustments to several factors:

• Stagnant global auto sales and overcapacity in the automotive industry.
• Slower-than-anticipated adoption of electric vehicles and automated driving technologies.

In its statement, the company noted, “The auto industry has significant overcapacities. At the moment, many projects in this business area are being put off or abandoned by automakers.”

Looking ahead

Despite the workforce reductions, Bosch has reaffirmed its commitment to handling these changes in a ‘socially responsible way.’ Existing agreements, including a jobs pact preventing layoffs in certain divisions until 2027 or later, remain in effect.

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