Supplier Bosch expects to cut more jobs than previously known given the crisis in the automotive industry. A company spokesman announced that up to 5,550 positions would need to be further “realigned” over the next few years. More than two-thirds of these jobs – a total of 3,800 jobs – will be eliminated in Germany.
Bosch logo.Picture: www.imago-images.de
It is understood these figures are being planned. The exact figure is part of negotiations with employee representatives, which have now begun. Demolition should be as socially acceptable as possible. Agreements reached in mid-2023, which exclude operational layoffs in German supply units, continue to apply until the end of 2027 and, in some cases, even until the end of 2029. By the end of 2023, approximately 72,000 employees will be laid off. A total of 134,000 Bosch employees work in this area in the country.
The software industry has been particularly affected
For example, the Cross-Domain Computing Solutions division responsible for assistance systems and autonomous driving is most affected by the current plans. By the end of 2027, 3,500 jobs will be lost globally, about half of them in Germany. According to the Works Council, this involves the locations in Leonberg, Abstadt, Renningen and Schwebeldingen in Baden-Württemberg and Hildesheim in Lower Saxony.
In addition, a total of about 750 jobs will be eliminated at Bosch's Hildesheim plant where electric vehicle products are produced by 2032, with the majority (600) by the end of 2026. The unit also has savings programs to produce steering systems for car and truck manufacturers. Between 2027 and 2030, up to 1,300 jobs will be eliminated at the Gmünde plant in Swabia, accounting for more than one-third of the total workforce at the site.
Reason for production reduction plan: Auto industry crisis
Suppliers cited the crisis in the automotive industry to justify savings plans. Bosch said: “This year's global automobile production will stagnate at around 93 million units, if not slightly lower than last year.” At most, a slight recovery is expected next year. The industry has serious overcapacity. Competition and price pressure have also increased.
For example, Bosch said manufacturers were ordering significantly fewer parts for electric vehicles, leading to a surplus of employees in Hildesheim. Furthermore, future technology markets will develop differently than Bosch expected: Demand for driver assistance systems and autonomous driving solutions is not as expected. It is said that many such projects are currently being delayed or abandoned by manufacturers.
Increasing competition is causing problems for Bosch's steering division. In response, they plan to bundle features and reduce costs. To this end, the different cost structures of existing factories abroad should also be better exploited so that steering systems can be supplied internationally at competitive prices.
Works Council Chairman: The announcement is a “slap in the face”
Employee representatives have been sharply critical of the plans. “The company's announcement that it will cut staff to this extent is a slap in the face to employees,” said Frank Sell, head of the supply sector's works council. A total of around 2,200 job cuts were agreed in May across four different business areas. Additional layoffs over a short period of time lead to reduced trust in management and create significant uncertainty.
In recent months, Bosch has also reduced the working hours of many employees and correspondingly reduced their wages. “Our cooperation with management has also reached a new low due to the company's unilateral intervention in employee compensation,” Searle continued. This puts the company's social peace at risk. “We will now organize at every level to resist these plans.”
Bosch’s plans continue to come to light
Since the beginning of this year, the technology group has repeatedly announced global layoff plans. In total, more than 7,000 jobs are involved. German factories are heavily affected – including the automotive supply unit, tool division and home appliances subsidiary BSH.
Thousands of Bosch employees across the country protested the planned demolition this spring. More than 10,000 people came to the company headquarters in Gerlinger Schillerhöhe near Stuttgart alone. Large-scale protests also took place in other locations, with around 15,000 people taking part.
Industry in crisis
The auto industry is in crisis due to a weak economy and weak demand, especially for electric vehicles. Ford hopes to cut 2,900 jobs in Germany by 2027. The Cologne plant has been completely converted to electricity and short-time working has been introduced, with a quarter of the jobs set to be eliminated. Volkswagen is discussing wage cuts, plant closures and layoffs; according to unions, three plants and tens of thousands of jobs are at risk. IG Metall hopes to mobilize against this situation by warning of strikes. Suppliers ZF, Continental and Schaeffler also want to cut thousands of jobs. (DAB/Sudan Development Authority/Africa Working Group/Department of Political Affairs)
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