German car supplier Bosch plans to cut 5,500 jobs due to a growing crisis in the auto industry, a spokeswoman said on Friday.
More than two-thirds of these, around 3,800 jobs, will be in Germany, she said, as the company sees a further “need to adapt”.
The figures are based on plans, but the exact figures need to be negotiated with employee representatives and discussions will begin.
The Cross-Domain Computing Solutions division, which is responsible for, for example, assistance systems and automated driving, is the hardest hit.
By the end of 2027, 3,500 jobs in the division will be lost worldwide, about half of which will be in Germany.
According to the works council, these are the locations in Leonberg, Abstatt, Renningen and Schwieberdingen in the southern state of Baden-Württemberg, and in Hildesheim in Lower Saxony.
By 2032, around 750 more jobs will disappear at the Hildesheim factory, where Bosch manufactures electromobility products, of which there will already be 600 by the end of 2026.
There are also savings plans for the division that produces steering systems for cars and trucks. Between 2027 and 2030, up to 1,300 jobs will be lost at the Schwäbisch Gmünd site, also in Baden-Württemberg. This is more than a third of the workforce there.
The supplier attributes the reduction to the crisis in the automotive industry.
“Global car production this year will stagnate at around 93 million units, if not slightly decline compared to the previous year,” Bosch said.
At best, a slight recovery is expected in the coming year, against the backdrop of significant overcapacity in the sector. Competitive and price pressure have also increased.
According to Bosch, manufacturers need significantly fewer parts for electric vehicles, for example, which leads to overcrowding.
Furthermore, the market for future technology is not developing as Bosch expected, with demand for driver assistance systems and automated driving solutions significantly lagging behind.
Many such projects are currently being postponed or canceled by manufacturers, the company said.
In the steering division, Bosch is now facing increasing competition and plans in response to bundling functions and reducing costs.
