Over 8,000 potential layoffs announced by another prominent German industrial entity
A spokesperson for the company shared with CNN on Wednesday that they intend to eliminate a total of 8,250 jobs globally in the coming years. This impact will be felt in their Mobility business sector, which supplies components to automakers globally. The sector is grappling with slow demand, high expenses, and increasing competition.
The company stated, "The challenging economic climate and the ongoing transformation in the automotive industry are presenting us, like other companies, with significant hurdles. It is crucial for us to stay competitive under these circumstances."
The company further noted, "The mobility sector is undergoing a significant transformation."
These planned job cuts, some of which were previously announced in early 2023, account for nearly 2% of Bosch's global workforce, which stood at over 429,000 at the end of 2023.
Bosch, established in 1886, also produces a variety of consumer goods, such as refrigerators and coffee machines, as well as machinery for other companies.
This news serves as another blow to Europe's largest economy, where iconic manufacturers are facing a perfect storm of competition from Chinese rivals, traditional disadvantages like high labor costs and taxes, and energy costs escalated by Russia's full-scale invasion of Ukraine in 2022.
Last week, tens of thousands of workers at Volkswagen, Germany's largest manufacturer, participated in strikes at various sites across the country. The industrial action was a result of ongoing collective bargaining talks, during which Volkswagen refused to rule out mass layoffs and plant closures in Germany - measures they deem necessary to boost their financial performance.
Just last month, Thyssenkrupp, Germany's largest steel producer, declared intentions to reduce its workforce by 11,000 by the end of the decade, which equates to approximately 40% of its workforce. The company attributed, in part, its decision to a surge in cheap imports from Asia.
Germany's economy registered a decrease for the first time since the onset of the coronavirus pandemic. It is predicted to contract once more this year, according to the latest projections from the European Union's governing body, the European Commission.
Reporting contributed by Olesya Dmitracova.
The company acknowledged that the mobility business, which contributes significantly to their global operations, is facing numerous challenges such as slow demand, high expenses, and intense competition. Due to these challenges and the demanding economic climate, Bosch is forced to eliminate jobs in this sector, impacting a substantial portion of their global workforce.
