German multinational to axe thousands of jobs – media

German auto parts supplier Robert Bosch has announced plans to trim its global workforce by 5,500 jobs in the next several years, citing stagnating global auto sales, Deutsche Welle has reported.

According to the company’s spokeswoman, cited by the outlet, some 3,800 of the job cuts will be made in Germany. The exact number of layoffs will be negotiated in talks with workers’ representatives, she said on Friday.

The group would cut 3,500 employees in its car software division by 2027, with about half the job losses coming in Germany.

Bosch said it also planned to slash up to 1,300 positions between 2027 and 2030 at its steering division based in Schwaebisch Gmuend, southwestern Germany.

The company said in a statement, cited by the outlet, that weak demand for electric vehicles had a “direct impact” on the number of orders placed by manufacturers with Bosch.

“The automotive industry is suffering from significant overcapacity,” Bosch stated, adding that competition and price pressure have continued to intensify.

Bosch manager Stephan Hoelzl claimed the company had to adapt to the changing market environment and reduce costs sustainably “to strengthen our competitiveness.”

In October, chairman Stefan Hartung warned of declining revenue in the coming year in an interview with Der Tagesspiegel, saying he could not rule out further job cuts in Germany.

Bosch had already announced plans in December 2023 to cut 1,500 jobs at its auto supply business.

Frank Sell, the head of the workers’ council for Bosch’s automotive division in Germany, described the planned layoffs a “slap in the face,” vowing to fight them.

Germany’s struggling automotive sector has sparked concern about the health of the EU’s largest manufacturing economy. This week, Ford announced plans to slash 4,000 jobs in Europe as EV demand has slowed. Employees at another German auto giant, Volkswagen, are threatening work stoppages after the company said it was mulling plant closures and significant jobs cuts.

The German Association of the Automotive Industry warned last year that the country was “dramatically losing its international competitiveness” due to soaring energy costs.

A recent survey by the VDA auto industry association suggested that the reshuffling of the German car industry could lead to 186,000 job losses by 2035, roughly a quarter of which have already occurred.