German manufacturer Robert Bosch will eliminate 13,000 jobs as part of its cost-cutting strategy in a challenging auto market, affected by low demand, high costs, and intense competition. The company’s annual cost shortfall has reached €2.5 billion ($2.9 billion), Bosch announced on Thursday, according to Reuters.
The company had previously warned that it would need to “fight for every cent” in a difficult economic environment, marked by trade barriers and declining demand. “We urgently need to work on our competitiveness in the mobility sector and continuously reduce costs,” said Stefan Grosch, member of the board and director of industrial relations. “This is very painful for us, but unfortunately, there is no way around it.”
Additional efficiency measures
In addition to workforce reductions, Bosch plans to lower material and operational costs, reduce investments in facilities and buildings, and streamline logistics and supply chains. Job cuts will affect various locations across Germany at different timelines, up to the end of 2030. The company noted a “significant overcapacity” in administration, sales, development, and production due to declining demand.
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CEO Stefan Hartung confirmed that “structural adjustments” will take place, but he estimated that Bosch’s revenue will grow by around 2% in 2025, compared to €90.5 billion recorded last year. Globally, Bosch employed approximately 418,000 people in 2024.
International context and trade challenges
The European auto industry received positive news from Washington, which confirmed the implementation of the US-EU trade agreement, applying a reduced 15% tariff on EU cars and auto parts starting August 1. However, the German Automotive Industry Association (VDA) stressed that remaining trade barriers remain a “challenge.”
“Geopolitical developments and trade barriers such as tariffs create considerable uncertainty – like all companies, we must face this,” said Markus Heyn, board member at Bosch and president of its Mobility division. “Competition intensity is expected to continue increasing significantly.”
Photo: spiegel.de
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