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.

Next steps for Bosch employees

If you’ve been affected by the layoffs at Bosch, understanding your legal rights is crucial.

Non-unionized employees in Canada’s manufacturing sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Many companies cutting jobs

Bosch isn’t the only major employer trimming its headcount as 2024 draws to a close.

Other big names, including Cargill, Vale, Windsor University, Rogers, General Motors, AMD, Visa, Meta, Nokia, and Deloitte, have also pulled out the axe.

SEE ALSO
• Salesforce to cut jobs at ‘Own’ following $2-billion acquisition
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• Where are layoffs happening in Canada?
• Pocket Employment Lawyer: Real-time insights on your rights

Lost your job? Contact us

If you’re affected by the latest round of layoffs at Bosch, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.