Bosch Announces Job Cuts, Deals Another Blow to the Automotive Industry

The EV industry has claimed another victim, with Bosch announcing job cuts in 2024. Bosch’s workforce reduction plans will affect around 5,550 jobs, which should aid in the company’s plans to stay competitive in the international market. Around 3,800 of these cuts will take place in Germany. Car maker Volkswagen has already announced a similar decision, with plans to shut down three factories in Germany, laying off thousands of workers despite resistance from unions. 

The German car industry’s layoffs are not surprising considering the conflicting nature of the sector right now. While there has been a global shift toward a demand for EV vehicles, organizations are struggling to catch up and shift their factories and production units toward meeting these needs. At the same time, the availability of cheaper Chinese alternatives has caused the demand to be weaker than expected.

Image: Bosch

Bosch Job Cuts Will Affect Around 5,550 Employees, More Cuts to Come

The production of EV vehicles is said to require fewer parts and be less labor intensive, which means that car parts makers no longer require as many hands to meet their production needs. Bosch’s EV demand slowdown is at the center of these job cuts, and while they will occur globally, a big chunk of the cuts can be expected to take place in Germany. The layoffs at the company will unfold in the next few years. 

According to Reuters, the company is planning to cut 3,500 jobs by the end of 2027 in its cross-domain computer solutions division, as a result of weak demands for intelligent driver assistance systems. 

Bosch will eliminate over 750 jobs at its German Hildesheim plant by 2032, of which 600 cuts should occur by the end of next year. The steering division at a plant in Schwaebisch Gmuend, Germany is also expected to see cuts between 2027 and 2030, with over 1,300 positions being eliminated. The exact number of workers laid off will be determined after talks with the worker representatives, but this appears to be a tentative plan for now. 

According to DW, Frank Sell, the head of the workers’ council for Bosch’s automotive division in Germany, referred to the Bosch job cuts as a “slap in the face,” and reiterated the group’s commitment to fighting the layoffs. “We will now organize our resistance to these plans at all levels,” he stated.

The large-scale, long-term layoff plans make it evident that the company intends to significantly whittle down its production to refocus energy on key areas that can guarantee the continued success of the organization. 

Bosch’s 4-Day Workweek Policy Remains Largely Unwanted

A 4-day workweek is a much sought-after change that many employees have been pushing for worldwide, but workers want the guarantee of unchanged pay with it. Many employers in Germany have explored the benefits of making the shift, but while some have made it successfully, the change at Robert Bosch has been met with some resistance.

Fortune reports that Bosch has made the transition to a 4-day workweek in a sense, reducing the working hours for 450 employees from 38-40 hours to 35 hours a week from March 1, 2025. This, unfortunately, will come with a reduction in pay, which means that employees will have to either manage with lower pay or look for an alternate part-time means of income to make up for the loss. 

The shift in the work practices, paired with the job cuts, suggests that tough times are coming for the employees at the organization. The company had already revealed plans to lay off 7,000 employees in October, indicating that Bosch would not be able to meet its financial target for 2024.

The shifting economic structures, growing competition, and changes in regulations and tariffs have been witnessed across the industry globally, evoking the possibility of another difficult year in 2025 for the automotive industry.

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