Bosch Unveils Major Cost-Cutting Plan Worth €2.5 Billion Annually in Automotive Sector
Bosch, the German multinational, has announced a new cost reduction plan in its automotive division amounting to €2.5 billion annually, according to a statement reported by media outlets on Wednesday.
The company, headquartered in Gerlingen near Stuttgart, indicated that these measures would also involve hiring practices, making the launch of a new plan to reduce jobs inevitable, although it did not specify the extent of this reduction. However, it ruled out implementing mass layoffs.
Since the end of 2023, Bosch has initiated several programs aimed at reducing personnel, impacting thousands of workers, particularly in Germany, to adapt to the rapid transformations in the sector and maintain its competitive edge.
Despite these challenging circumstances, the company expects slight growth in its automotive-related activities by 2025, with revenue increases of no more than 2%, primarily driven by safety systems, electronic components, and software supplied to car manufacturers.
The latest wave of measures was announced last July, when the company signaled the potential cancellation of up to 1,100 additional jobs in Germany as part of a restructuring plan extending to 2029, particularly at its Reutlingen site in Baden-Württemberg, which specializes in electronic components and employs around 10,000 people.
With this new initiative, the total number of jobs announced for cancellation at Bosch has risen to over 14,000, most of which are concentrated in its automotive operations in Germany.
