Information technology Bosch sets red pencil to work - 5550 jobs to be cut

In view of the crisis in the automotive industry, the supplier Bosch is planning to cut more jobs than previously known.

According to a company spokesperson, there will be a further "need for adjustment" of up to 5550 jobs in the coming years. More than two thirds of these - a total of 3,800 jobs - are to be cut in Germany.

According to the information provided, the figures are planned. Exact figures are part of the negotiations with employee representatives, which are now to begin. The redundancies are to be made as socially responsible as possible. The agreement concluded in mid-2023, which excludes compulsory redundancies in the supplier division in Germany until the end of 2027, and in some cases even until the end of 2029, will continue to apply. A good 72,000 of the approximately 134,000 Bosch associates in Germany were working in this division at the end of 2023.

Software area particularly affected

The Cross-Domain Computing Solutions division, which is responsible for assistance systems and automated driving, for example, is most affected by the current plans. By the end of 2027, 3,500 jobs are to be cut there worldwide, around half of them in Germany. According to the Works Council, this involves the Leonberg, Abstatt, Renningen and Schwieberdingen sites in Baden-Württemberg and Hildesheim in Lower Saxony.

In addition, around 750 jobs are to be cut at the Hildesheim plant, where Bosch manufactures products for electromobility, by 2032 - the majority of these (600) by the end of 2026. There are also cost-cutting plans for the division that produces steering systems for cars and trucks. Up to 1,300 jobs are to be cut at the Schwäbisch Gmünd site between 2027 and 2030, more than a third of the workforce there.

Reason for redundancy plans: crisis in the automotive industry

The supplier justifies the cost-cutting plans with the crisis in the automotive industry. "Global vehicle production will stagnate this year at around 93 million units, if not fall slightly compared to the previous year," Bosch announced. A slight recovery at best is expected in the coming year. There is considerable overcapacity in the industry. Competitive and price pressure has also intensified.

According to Bosch, manufacturers are calling off significantly fewer parts for e-cars, for example, which is leading to overstaffing in Hildesheim. In addition, the market for future technology is developing differently than Bosch expected: Driver assistance systems and solutions for automated driving are not in as much demand as predicted. Many such projects are currently being postponed or abandoned by manufacturers, the company said.

In the steering division, Bosch is therefore struggling with increased competition. In response, the company is planning to bundle functions and reduce costs. To this end, existing plants abroad with different cost structures are to be better utilized in order to be able to offer steering systems at competitive prices internationally.

Head of the works council: announcement is a "slap in the face"

Sharp criticism of the plans came from employee representatives. "The company's announcement to reduce staff to this extent is a slap in the face for the employees," said Frank Sell, head of the works council for the supplier division. A total of around 2,200 job cuts had already been agreed in four different divisions in May. The additional job cuts within a short space of time are eroding confidence in the management and leading to great uncertainty.

In recent months, Bosch has also cut the working hours of numerous associates - and their salaries accordingly. "As a result of the company's unilateral intervention in associates' pay, we have also reached a new low in our cooperation with the board of management," Sell continued. This puts social peace in the company at risk. "We will now organize our resistance to these plans at all levels."

Plans repeatedly made public at Bosch

For a good year now, the technology group has repeatedly announced plans to cut jobs worldwide. In total, more than 7,000 jobs are at stake. The majority of the jobs affected are in Germany - including in areas of the automotive supplier division, but also in the tools division and at the household appliance subsidiary BSH.

In spring, thousands of Bosch employees across Germany protested against the planned redundancies. At that time, more than 10,000 people gathered in front of the Group headquarters on Schillerhöhe near Stuttgart in Gerlingen alone. There were also large protests at other locations with around 15,000 participants.

Industry in crisis

The automotive industry is in crisis due to the weak economy and is suffering from weak demand, particularly for e-cars. Ford plans to cut 2,900 jobs in Germany by 2027. One in four jobs is to be cut at the plant in Cologne, which has been completely converted to electric and is already on short-time working. At Volkswagen, wage cuts, plant closures and job cuts are on the cards; according to the works council, three plants and tens of thousands of jobs are under threat. IG Metall intends to mobilize against this with warning strikes. Suppliers ZF, Continental and Schaeffler also want to cut thousands of jobs.

SDA