Bosch Will Fire 2000 Indians As Profits Drop By 66%, Share Prices 22% Down
World biggest automobile parts supplier: Bosch, has finally thrown in the towel for their Indian operations. They have announced a massive layoff, wherein more than 2000 Indian employees will be fired, in the next couple of years.
This is Bosch India’s one of the biggest ever layoffs.
What are the main reasons behind this layoff?
Bosch India Will Terminate 2000 Indian Employees
World biggest supplier of auto-parts, Germany based engineering and technology behemoth Bosch will fire 2000 Indians, as confirmed by the management.
Bosch India Managing Director Soumitra Bhattacharya confirmed this, as he said, “There is a transformation happening across the industry. We looked at that as an opportunity to transform the company even before the downturn started.”
Without revealing the exact numbers, he said that ‘a couple of thousand’ jobs will be cut in next few years.
Why Bosch Is Firing Indians?
India, along with global markets are facing a severe slowdown in the auto sector, and this is the primary reason why Bosch has decided to reduce jobs in India.
Globally, more than 80,000 employees will lose job, who are working in the automobile sector, and in India alone, anywhere between 2 lakh to 10 lakh employees have either lost their jobs, or can lose in the coming days.
$57 billion auto-parts industry is in shambles.
This is an unprecedented crisis in the auto-sector, and Bosch hasn’t been able to defend themselves from this mayhem.
Profits by Bosch India for the quarter ending September 2019 was down by 66%, and their share prices are well below 22%.
Bosch is worried about regulatory changes, threat of electrification, a liquidity crunch and an economic slowdown in India, and believes that these are the reasons why Indian automobile sector is facing a slowdown.
But Bosch India Is Optimist
Despite the negativity and depressing numbers, Bosch India is an optimist about its Indian operations.
As per them, both fuel-based vehicles, and electric vehicles will survive simultaneously: Till 2030, 80% of all vehicles will be fuel-based, whereas 20% will be electric.
Bosch India believes that the auto-sector will recover within next 2-3 years.
We will keep you updated, as more details come in.