Media reports German engineering leading company declaring additional job cuts

(MENAFN) German engineering giant Bosch, the world’s largest automotive supplier by revenue, is preparing for additional job cuts at multiple locations due to weak global sales and the ongoing economic downturn in Germany, Stuttgarter Zeitung reported.

The exact number of layoffs has not been disclosed, but the move follows a series of workforce reductions. In November, Bosch announced plans to eliminate 5,500 jobs over the coming years.

CEO Stefan Hartung attributed the cuts to sluggish global economic growth, stagnation in the automotive industry, rising competition from China, and consumer uncertainty. He also pointed to the slower-than-expected shift to electric vehicles (EVs), which has disrupted industry forecasts.

“We won’t be able to avoid further job cuts,” Hartung told the outlet on Sunday.

He explained that the transition from combustion engines to electric powertrains would inevitably lead to job losses. However, he noted that the delayed adoption of EVs might allow traditional engine production to continue operating at full capacity for longer than expected. As a result, some employees may reach retirement before their positions are phased out.

Bosch has repeatedly announced job reduction plans over the past two years, warning in 2023 that up to 10,000 positions could be at risk. Preliminary estimates suggest the company’s earnings before interest and taxes (EBIT) fell by a third to €3.2 billion last year.

The company’s latest cost-cutting measures reflect the growing challenges facing Germany’s automotive sector. Rising production costs have led to plant closures and bankruptcies, even among major players like Volkswagen.

Earlier this year, the Handelsblatt Research Institute (HRI) warned that Germany is heading for its longest post-war recession, with the economy expected to contract for a third consecutive year in 2025.

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