Bosch to Lay Off Thousands of Workers in Automotive Division Due to Stagnant Car Sales

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Bosch, the German auto technology supplier, announced on Friday that it plans to cut up to 5,500 jobs in its automotive division over the next several years, citing weak demand for cars and new technologies.

The company, based in Gerlingen near Stuttgart, stated that the reduction in workforce is due to stagnant global auto sales, excess factory capacity in the automotive sector, and a slower-than-expected transition to electric and software-controlled vehicles.

Around 3,500 jobs will be eliminated by the end of 2027, mainly affecting teams working on advanced driver assistance, automated driving technologies, and centralized vehicle software. Half of the cuts are expected to occur in Germany. Bosch explained that the auto industry is experiencing significant overcapacity, with many car manufacturers delaying or canceling projects in these areas due to disappointing market growth for future technologies.

In addition, Bosch plans to reduce 750 jobs at a plant in Hildesheim, Germany, by the end of 2032, with 600 cuts to occur by the end of 2026. Another 1,300 positions will be eliminated at a plant in Schwaebisch Gmund between 2027 and 2030.

The job reductions are still in the planning phase, and final decisions will be made in collaboration with employee representatives, ensuring that the process is carried out in a socially responsible manner. Bosch has committed to honoring a jobs pact that guarantees no layoffs in Germany until 2027 for many of its employees and until 2029 in certain cases.

Bosch’s mobility division employs around 230,000 people out of its global workforce of 429,000. Beyond its automotive business, Bosch also manufactures a wide range of products, including industrial equipment, building systems, power tools, and video security systems.