German engineering giant announces more job cuts – media
Bosch, the world’s biggest automotive supplier by revenue, is planning additional job cuts at several locations amid stagnating global sales and deepening downturn in the German economy, Stuttgarter Zeitung has reported.
While the exact number of layoffs has yet to be announced, the reported move will add to a series of workforce reductions by the company. In November, the Stuttgart-based group announced plans to slash 5,500 jobs over the next several years.
Bosch CEO Stefan Hartung attributed the decision to sluggish global economy, the stagnating automotive sector, as well as increasing competition from China, and consumer uncertainty. The industry is also reckoning with a slower-than-expected transition to electric vehicles.
“We will not be able to avoid further job cuts,” he told the outlet on Sunday.
Hartung also cited the shift from combustion to electric engines, highlighting that it will inevitably result in significant job losses.
The slower-than-expected adoption of e-mobility could also allow the existing combustion engine production to continue operating at full capacity for longer than expected, Hartung noted. Many employees will reach retirement before their positions are phased out due to the transition, he added.
Over the past two years Bosch has repeatedly announced plans to cut jobs, warning last year that up to 10,000 positions could be at risk.
Preliminary estimates showed that the company’s earnings before interest and taxes (EBIT) fell by a third to €3.2 billion last year, the outlet said.
The company’s planned cutbacks are the latest sign of the growing strain on the German car industry.
Germany’s ailing automotive sector has raised concerns about the stability of the EU’s largest manufacturing economy. Rising costs have led to shutdowns and bankruptcies, including major players like Volkswagen.
Earlier this year, Handelsblatt Research Institute (HRI) warned that the German economy is on course for its longest post-war recession, with a third consecutive year of contraction projected for 2025.
