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On Friday local time, German automotive parts supplier Bosch announced plans to cut up to 5500 jobs in its automotive department in the coming years, another sign of the German automotive industry facing headwinds.
A Bosch spokesperson claimed that the company will lay off 5500 employees worldwide, including 3800 positions in Germany. The spokesperson said, "The automotive industry is facing severe overcapacity, increasing competition and price pressure, and a slower than expected transition to electric vehicles
It is reported that about 3500 layoffs will be completed by the end of 2027, involving departments developing intelligent driving technology and centralized vehicle software. Bosch pointed out that the development trend of advanced technology has not progressed as initially expected, and currently, many car manufacturers are delaying or abandoning projects in this business area. As a component supplier, the company's business has suffered huge negative impacts.
The layoffs are still in the planning stage, and the final figures must be agreed upon with employee representatives and executed in a socially responsible manner as stated by the company.
By revenue, Bosch is the world's largest automotive supplier. Its components are almost ubiquitous in the 1.5 billion cars in operation worldwide. From spark plugs to autonomous driving software, Bosch produces various products and has made significant investments in new technologies.
Bosch has approximately 429000 employees worldwide, with around 230000 working in the automotive department. In addition to its business as a supplier to the automotive industry, Bosch also produces software for factories and construction equipment, as well as a range of products including industrial boilers and waste heat recovery systems, video safety systems, and power tools.
Bosch's layoff plan is the latest sign of the spreading pain in the automotive parts industry, which has approximately 1.7 million employees in the European Union. Previously, companies including Continental and ZF were reducing their workforce due to slowing demand.
On Wednesday of this week, Ford Motor Company announced that it will lay off 2900 employees at its factory in Cologne, Germany by 2027. The reason is that Ford's factory in Germany has been losing money for years, and Ford has decided to reduce costs through layoffs.
Marcus Wassenberg, Managing Director of Ford Germany, stated that this move reflects the ongoing changes, particularly pointing out that labor and energy costs in Germany are too high.
Last month, Volkswagen Germany submitted a cost cutting plan to the union, including a comprehensive 10% pay cut, wage freezes for 2025 and 2026, closure of at least three German factories, and downsizing of other factories.
The German metal union, representing Volkswagen workers, has once again expressed its clear opposition to the proposed salary cuts, layoffs, and factory closures by Volkswagen management, and will hold a "large-scale strike never seen in this country" starting from December 1st.
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