Bosch Announces Plans to Cut 5,500 Automotive Jobs Amid Global Auto Industry Challenges

Berlin, Germany - German technology and services company Bosch announced on Friday that it plans to reduce its automotive division workforce by up to 5,500 jobs over the next several years due to stagnant global auto sales and an unexpected slowing of the electric-powered vehicle transition.

The move is a reflection of the pressures facing the German and global auto industries, which have been struggling with overcapacity, declining sales, and a slower-than-expected shift towards autonomous technologies. Bosch's automotive division, which develops advanced driver assistance and automated driving technologies, as well as centralized vehicle software, will be particularly hard hit.

According to the company, 3,500 job reductions are planned before the end of 2027, with approximately half of those affected occurring in Germany. A plant in Hildesheim, Germany, is set to lose 750 jobs by the end of 2032, while another location, Schwaebisch Gmund, will see 1,300 job losses between 2027 and 2030.

The decision has not been made final yet and is subject to approval from employee representatives and carried out in a socially responsible manner. However, this announcement comes as other auto industry players have also been warning of the need for significant restructuring due to the challenges facing the sector.

Bosch's mobility division, which employs 230,000 people worldwide, will be one of the hardest hit areas. The company's global workforce stands at around 429,000 across various divisions, including factory and building equipment, industrial boilers, and video security systems, among others.

Industry sources suggest that the move is a prelude to further consolidation and restructuring efforts in the global auto industry, which has been marked by declining sales and profit margins.