Bosch to cut up to 5,500 jobs due to slow sales of electric vehicles and competition from Chinese imports.
It is the latest blow to Europe’s auto industry after Volkswagen and Ford announced thousands of job cuts last month.
Cheaper electric cars made in China have made it harder for European manufacturers to remain competitive, while demand has weakened for driver assistance and automated driving solutions offered by Bosch.
The company said a slower-than-expected transition to software-controlled electric vehicles was partly to blame for budget cuts in the auto parts division.
Demand for new cars has fallen overall in Germany due to a slowing economy, with recession narrowly avoided in recent years.
The final number of job cuts has not yet been agreed with employee representatives. Bosch said they would be conducted in a “socially responsible” manner.
Around half of the job cuts would take place in Germany.
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Bosch, the world’s largest supplier of auto parts, has already committed not to make layoffs in Germany before 2027 for many employees and until 2029 for part of its workforce. He declared that this pact would remain in force.
The job cuts would be made over the next eight years or so.
The Gerlingen site, near Stuttgart, will lose some 3,500 jobs by the end of 2027, reducing the workforce responsible for developing automotive software, advanced driver aids and automated driving technologies.
Other losses will concern the Hildesheim site near Hanover, where 750 jobs will be lost by the end of 2032, as well as the Schwaebisch Gmund factory, which will lose around 1,300 jobs between 2027 and 2030.
Bosch’s decision follows Volkswagen’s announcement last month of its closure. at least three factories in Germany and lay off tens of thousands of people staff.
Its remaining German factories are also expected to be downsized.
Even though Germany has been hit hard by budget cuts, it does not bear the consequences alone.
Earlier this week, Ford announced plans to cut 4,000 jobs in Europe – including 800 in the UK – amid industry concerns that weak electric vehicle (EV) sales could lead to heavier fines for companies failing to meet government targets.