More cuts and layoffs. There is no peace for the automotive industry, which has been hit by a deep crisis that has forced giants and multinational companies into serious “downsizing”. Now it’s the turn of German car supplier Bosch, which announced its intention to lay off 5,500 people yesterday, Friday, November 22. “The company needs more regulation,” a spokesman said, explaining that more than two-thirds of those jobs, or about 3,800, would be cut in Germany.
Bosch announced that it will lay off 5,500 people
For example, the Cross-Domain Computing Solutions division, which is responsible for support systems and autonomous driving, is the most affected by this situation. By the end of 2027, the division will lose 3,500 jobs worldwide, about half of which will be in Germany. According to the works council, this concerns the sites Leonberg Abstatt, Renningen and Schwieberdingen in southern Baden-Württemberg and Hildesheim in Lower Saxony. By 2032, another 750 people will be laid off at the Hildesheim plant where Bosch produces electromobility products; 600 of them will already be by the end of 2026.
Cost cuts are also planned for the division that produces steering systems for cars and trucks. Also at the Schwäbisch Gmund site in Baden Württemberg, up to 1,300 jobs will be eliminated between 2027 and 2030. This is more than a third of the workforce. The supplier attributed the shrinkage to the crisis in the automotive industry. “Global vehicle production will remain stable at 93 million units this year, albeit without a slight decrease compared to the previous year,” Bosch said. A slight recovery is expected at most in the coming year, also due to the serious excess capacity in the sector. Competition and price pressure have also intensified.
According to Bosch, manufacturers need much fewer components for electric vehicles, which leads to excessive staffing. Additionally, the market for future technologies is not developing as Bosch expected, as the demand for driver assistance systems and autonomous driving solutions has decreased significantly. The company said most such projects are currently postponed or canceled by manufacturers. As for the steering department, Bosch is struggling with increasing competition and plans to consolidate functions and reduce costs.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
