Automotive: Bosch to cut 1 500 jobs in Germany

A company spokesperson told AFP that the company estimates that up to 1 500 people will need to be laid off by the end of 2025 at its two sites in Feuerbach in Stuttgart and Schwieberdingen in Baden-Württemberg (southwest Germany), including development, management and sales.

Discussions are already underway with employee representatives on measures to avoid forced redundancies.

"We are looking forward to internal reassignments of employees to other areas, offering qualification programs in growth regions, early retirement rules or voluntary separation agreements", the spokeswoman explained.

Bosch is facing structural changes in drive systems. Many electric vehicles use simple single-speed transmissions that require fewer components than internal combustion engine vehicles.

The transition to electric vehicles usually requires a large initial investment and involves job losses.

But there is more: "The weakness of the global economy, persistent inflation, especially caused by rising energy and raw material prices, and the negative impact of exchange rates are exacerbating the situation", this source explains.

Nevertheless, the company is sticking to the "natural" exclusion of forced layoffs, according to an agreement reached this summer.

In July, Bosch signed an agreement with representatives of employees excluding layoffs in the mobility sector in Germany, which employs about 80 000 people.

The industry is undergoing a series of upheavals related to a strong focus on new drive solutions, software, new vehicle architectures, automated driving, and demand for mobility services.

According to a study published in early December by the European Automotive Suppliers Association (CLEPA), the current policy of rapid electrification of the automotive industry could cost up to 500,000 jobs in the EU by 2040.

The trends that have led to job losses at Bosch are expected to continue throughout the automotive industry. The transition to new technologies such as electric vehicles, automation, and artificial intelligence will continue to reduce the need for jobs in the industry.

Employers will need to refocus their business models and invest in new skills to prepare for these changes. Employees will also need to prepare for change and adapt to new labor market demands.