Auto parts maker, Bosch to cut up to 1,500 jobs

Admin I Monday, Dec. 11, 2023

 

BERLIN – German automotive supplier Bosch is considering major job cuts in its powertrain division. The company is considering cuts of up to 1,500 development, administration and sales positions in the division, a Bosch spokeswoman announced on Monday.

The announcement follows a report on the potential cuts from the Automobilwoche magazine.

The shift of the automotive industry away from combustion engines and toward electric vehicles was cited as the reason for the job cuts. The spokeswoman said that the shift will have a major impact on the entire sector in the medium term.

The transition to electric vehicles requires a high level of upfront investment and is accompanied by falling employment requirements, she said.

A weak global economy, persistent inflation and negative exchange rate effects are exacerbating the situation at the company.

Labour representatives at Bosch are in close contact with the company about any staffing reductions, the spokeswoman said, and the works councils would be involved before any final decisions are made.

The cuts would likely impact workers at Bosch’s facilities in the south-western German towns of Feuerbach and Schwieberdingen.

“We want to focus on the internal placement of associates in other areas, on offering qualification programmes for growth areas, but also on early retirement arrangements or voluntary redundancy agreements,” the spokeswoman said.

Bosch remains committed to the deal reached with labour representatives last summer, which rules out compulsory redundancies for about 80,000 employees in the automotive supply division in Germany until the end of 2027, she said.