Bosch to cut 13,000 jobs in blow to German auto sector

"The auto industry in Europe's biggest economy has been hammered by fierce competition in key market China, weak demand and a slower than expected shift to electric vehicles. The cuts, all of which will take place in Germany, represent about 10 percent of Bosch's total workforce in the country, and three percent of its staff worldwide. Bosch -- the world's biggest auto supplier, making everything from braking and steering systems to sensors -- said the layoffs were needed to help make annual savings of 2.5 billion euros in the group's car unit."

""Demand for our products is shifting significantly to regions outside Europe," said Stefan Grosch, head of industrial relations at Bosch. "We need to orient ourselves to where our markets and customers are." Workers' representatives vowed to resist the cuts, labelling them "unprecedented"."

"Bosch had already announced 9,000 layoffs since last year and other automotive suppliers, including Schaeffler and Continental, have also laid off thousands. The top carmakers themselves are facing serious problems, with 10-brand Volkswagen -- Europe's top automaker -- planning to cut thousands of jobs in Germany as sales and profits slide. Sports car maker Porsche, a VW subsidiary, last week hit the brakes on its EV rollout due to weak demand. "Electromobility has not taken off as quickly as forecast," said Marco Zehe, head of electrified motion at Bosch. "That means we have lots of overcapacity, particularly in Europe and particularly in Germany.""

Bosch will cut 13,000 jobs in Germany, mostly in its automotive unit, equal to about 10% of its German workforce and 3% globally. The layoffs target annual savings of 2.5 billion euros in the car unit as demand shifts away from Europe and competition intensifies in markets such as China. The broader German auto sector faces weak demand, overcapacity from a slower EV transition and widespread job reductions among suppliers and manufacturers. Workers' representatives pledged resistance while major carmakers and suppliers continue to trim staff and pause EV rollouts amid falling sales and profits.

Read at The Local Germany