German industrial giant Bosch revealed on Thursday that it will cut 13,000 jobs, primarily within its automotive division, marking another setback for the country’s struggling automotive industry.
Bosch stated that the job cuts are driven by a stagnant market, intensified by strong competition in China, declining demand, and a slower-than-anticipated transition to electric vehicles. All 13,000 layoffs will occur in Germany, affecting approximately 10% of the company’s workforce in the country and 3% of its global staff.
Bosch, the leading global automotive supplier, producing a wide range of components from braking and steering systems to sensors, said the layoffs are necessary to achieve annual savings of €2.5 billion ($2.9 billion) in its automotive division.
“Demand for our products is shifting significantly to regions outside Europe. We need to orient ourselves to where our markets and customers are,” said Stefan Grosch, head of industrial relations at Bosch.
The company also attributed the rising expenses to tariffs imposed by U.S. President Donald Trump. Bosch reported a €2.5 billion ‘cost gap’ in its automotive division and stated it would implement cost-cutting measures across all areas as quickly as possible.
Positions in administration, sales, development, and production are expected to be impacted across Bosch’s sites in Feuerbach, Schwieberdingen, Waiblingen, Bühl, and Homburg. As of December 2024, the company employed a global workforce of 418,000 people.
Alongside the planned layoffs, the company declared plans to scale back investments in its production sites and buildings, citing a sharp decline in demand for its products. The decision comes amid a downturn in Germany’s thriving automotive industry, as international competitors continue to erode the country’s market share. Bosch stated that the challenging global environment and rising additional costs make it unsustainable to retain its current staffing levels. The company also confirmed that it would initiate discussions with affected employees immediately.
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