The deputy chairman of Bosch’s supervisory board has said that the company plans to cut between 8,000 and 10, 000 jobs in Germany.
As it struggles to remain competitive on the international market, the automotive supplier is cutting costs further.
Frank Sell, chairman of the Bosch Mobility Solutions division’s main works council and also chairman, said this earlier in the week.
He said that the “absolutely intolerable” atmosphere created by the plans at the company was reported.
Sell stated that unions and representatives of labour will create an action plan next year.
Only three weeks ago Bosch announced that it would cut 5,000 jobs in Germany, including 3,800 layoffs.
A spokesperson at the time said that the number of redundancies will be discussed with employees’ representatives and decided upon.
The company said in another statement that it had to invest heavily into new technology to adapt to the “changing market environment”.
The company also pointed out that the market was stagnant and announced it would eliminate up to 1,300 positions between 2027 and 3030 at its Germany-based division which makes vehicle steering systems.
The company had announced its plans to reduce 1,500 positions in December 2023.
This is not the only redundancy in the automotive industry of the country.
Volkswagen workers in Germany will strike this month over plans by the company to cut pay and eliminate thousands of jobs as the demand for cars in Europe plummets while costs make it difficult to compete with rivals from abroad.
Ford will also cut 4,000 jobs across Europe, including 800 jobs in the UK. This is due to a decline in sales of electric vehicles.
According to a Bosch spokesperson, Personnel Today reported: “The mobility industry is going through a profound change.” The global vehicle production this year is expected to remain at around 93 millions units, or even slightly decline from the previous year.
“Bosch is expecting only a small recovery in the next year. The automotive industry has a significant surplus of capacity, and both the price and competitive pressures have increased. We face major challenges, as do other companies, due to the difficult economic climate and ongoing transformation of the automotive industry.
It is crucial that we remain competitive in these conditions. We must also make large upfront investments to position ourselves for the long-term. We will continue to try to maintain as many jobs as possible through new products and programs for reskilling, but these conditions make it impossible to avoid job cuts in certain areas. We want to make any personnel adjustments as socially acceptable and as feasible as possible.
In the Mobility sector, we are committed to the work agreement that was concluded in the summer of 2023. We also guarantee there will be no job cuts at our German Mobility sites until the end 2027.”
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