Bosch had already announced the possible reduction of combustion engine jobs in December. There is now a risk of further job cuts.
The world’s largest automotive supplier Bosch wants to cut jobs in the vehicle electronics and software sector. According to the current status, the possible reduction in personnel is in the range of around 1,200 positions worldwide – of which up to 950 are in Germany.
A company spokeswoman said on Thursday that the employees had been informed about the plans and possible adjustments. But there is no decision yet. The “Handelsblatt” had previously reported on it.
According to the information, the plans concern the supplier division Cross-Domain Computing Solutions, which is responsible, for example, for sensors, vehicle computers and control devices as well as the corresponding software. Among other things, assistance systems, solutions for automated driving and infotainment systems are developed there.
Balance between investments and cost discipline
As the industry transforms, the further development of automated driving technologies is a key growth area, the spokeswoman said. The demand for intelligent driving assistance systems and solutions for them is constantly developing.
However, the area is facing significantly greater challenges than expected. The weak economy and high inflation are slowing down the transition and increasing spending. Now you have to maintain a balance between investments and cost discipline.
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Bosch therefore wants to talk to employee representatives about how costs and structures can be adapted to the changed market situation. This is primarily about the level of employment in the development, sales and administration areas.
The locations affected in Germany are Abstatt, Hildesheim, Leonberg, Renningen and Schwieberdingen as well as the associated branches. Exactly how many jobs will be cut depends on the negotiations.
Reductions also in the drive division
The change in the automotive industry – from combustion engines to electric motors and hydrogen – poses major challenges for the industry leader from Gerlingen near Stuttgart. Bosch boss Stefan Hartung only announced in December that the group would only reach its sales and profit targets one to two years later than initially planned. The reasons he cited included the difficult economic environment and the slow ramp-up in demand for electric cars.
It was also announced in December that Bosch was considering a major reduction in the drive division. In Feuerbach and Schwieberdingen, the group saw a need for up to 1,500 jobs in the areas of development, administration and sales. According to the information, the aim is to find socially acceptable solutions for the employees.
The company stands by the future agreement concluded with employee representatives, said the Bosch spokeswoman. The agreement from last summer excludes operational dismissals for the almost 80,000 employees of the supplier division in Germany until the end of 2027. The division is the largest Bosch division.
They accounted for almost 60 percent of the 88.2 billion euros that the company generated in sales last year. More than half of the approximately 420,000 employees worldwide work in this area.
Other suppliers also have to react
The change in the auto industry is also affecting other suppliers: just this week, the ZF general works council warned of job cuts at German locations. At least 12,000 jobs at the supplier could be affected – including 10,000 by 2028.
Tens of employees voiced their displeasure at a protest march and rally in front of the operations headquarters. The heavily indebted company from Friedrichshafen on Lake Constance did not want to comment on the figures. In view of the poor order situation, human resources manager Lea Corzilius showed understanding for the employees’ concerns, but at the same time warned against scaremongering.
In the fall, Continental also announced that it wanted to make its ailing automotive supply division profitable again with a savings program. Administrative positions should be cut in order to save costs. Recently there was talk that jobs in the mid-four-digit range could probably be lost.
Source: Stern
