Robert Bosch, the world’s largest automotive supplier by revenue, plans to cut 5,500 jobs globally, including 3,800 positions in Germany, as the automotive industry faces declining demand. The reductions will primarily impact roles related to automated driving and car steering products in Germany, according to the IG Metall union and a Bosch spokeswoman.
“The automotive industry is suffering from significant overcapacity,” Bosch stated, adding that the exact number of layoffs will be determined through negotiations with labor representatives. The company also noted that competition and price pressures have intensified.
Bosch, a private company with components used in nearly all of the 1.5 billion vehicles in operation globally, has heavily invested in new technologies. However, its revenues have been hit by a persistent slump in car demand. European car production remains below pre-pandemic levels of nearly 16 million units annually, and Bosch anticipates global car production could decline this year, with only a modest recovery by 2025.
The broader automotive parts industry, employing around 1.7 million people across the European Union, is also grappling with the downturn. Companies such as Continental AG and ZF Friedrichshafen AG have similarly reduced their workforces in response to lower demand.
Automotive manufacturers are taking similar steps. Ford Motor. recently announced plans to eliminate 4,000 jobs in Europe, representing 14% of its regional workforce. Volkswagen AG is considering unprecedented plant closures in Germany, while Mercedes-Benz Group AG is also pursuing cost-cutting measures.
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