Bosch, one of the world’s largest automotive technology and engineering firms, has announced plans to cut 13,000 jobs from its mobility division in Germany as part of a cost-cutting initiative worth €2.5 billion (£2.06 billion). The decision comes amid a stagnating global vehicle market, intensified competition from Tesla and BYD, and higher costs triggered by US tariffs.
Falling Demand and Rising Competition
The company cited a “sharp decline in demand” for vehicle components and software, alongside fierce competition from electric vehicle makers, as key reasons behind the layoffs. Bosch said the global automotive market is “subdued” and under mounting pressure, forcing the company to “reduce costs at all levels as quickly as possible.”
US President Donald Trump’s 15% tariff on European auto exports has also hit profitability. Although lower than tariffs on other nations, Bosch said the additional costs make it “impossible to maintain its current high headcount.”
Impact on Jobs and Operations
The job cuts will affect roles across administration, sales, development, and production in several German cities, including Feuerbach, Schwieberdingen, Waiblingen, Bühl, and Homburg. Discussions with affected employees will begin immediately.
Despite the sweeping changes, Bosch confirmed that no UK jobs will be impacted for now. However, the company will “continually assess” its operations based on market developments and customer demand.
Strategic Shift and Industry Challenges
Alongside job reductions, Bosch plans to cut investments in production facilities and new buildings as part of its restructuring strategy. The company currently employs over 418,000 people globally as of December 2024.
Stefan Grosch, a member of Bosch’s board of management, described the cuts as “regrettable but unavoidable.” He noted that the once-dominant German auto industry is losing market share as global rivals surge ahead.
Outlook
Bosch’s announcement highlights the growing challenges faced by traditional automotive giants amid changing market dynamics, trade tensions, and the rapid shift toward electric mobility. The restructuring aims to stabilize Bosch’s finances and prepare the company for a more competitive and uncertain future in the global automotive sector.
