Reduced work hours for 600 Bosch employees - Bosch to Reduce Workforce by 600 Employees
In a bid to navigate the turbulent waters of the European automotive industry, technology giant Bosch has announced a series of job reduction programs and changes in working hours for its employees. The latest move comes as the company plans to cut up to 1,100 jobs by 2029, primarily affecting production line, development, and administrative roles, at its Reutlingen plant in Germany.
The Reutlingen plant, which currently employs around 10,000 people, will shift its focus from producing electronic control units to manufacturing semiconductors. This strategic move is intended to secure the future of the site by leveraging the strategic importance of semiconductor production.
Bosch CEO Stefan Hartung has expressed concerns about the economic situation and the transformation in the automotive industry, anticipating further cuts. As a result, 600 employees at research sites in Renningen near Stuttgart and Hildesheim have recently had their working hours reduced from 38 to 40 hours per week to 35 hours per week, with a corresponding reduction in salary.
This restructuring effort is not limited to the Reutlingen plant. Bosch has already announced substantial job cuts, including 7,000 positions last year, primarily in Germany. Furthermore, the company plans to cut 5,500 jobs across the organisation in November 2024.
The job cuts now amount to almost 15,000, with a large part in the automotive supply sector in Germany. The affected sites include the Reutlingen plant and the subsidiary Bosch Engineering with headquarters in Abstatt. Other pillars such as mechanical engineering and building technology are also wobbling.
Bosch is grappling with low demand for vehicles, especially electric cars, and rising costs. This has led to a decrease in demand for home appliances such as cordless screwdrivers, washing machines, and refrigerators, affecting the home appliances subsidiary BSH and the power tools division.
The company's workforce has already seen a decrease of over 4,500 to over 129,600, representing a decrease of 3.4 percent. In the fourth quarter of 2024, Bosch had a total of almost 417,900 employees worldwide, which is around 11,600 fewer than a year earlier.
The decision to cut jobs and reduce working hours is due to the current difficult economic situation and delayed market expectations in various new technology fields. Bosch is not alone in facing these challenges, as numerous measures have already been implemented in various areas of the company.
The measures aim to secure jobs and position Bosch for a successful future amidst the ongoing transformation of the automotive industry. Bosch remains committed to its mission of providing innovative solutions that improve quality of life and provide sustainable mobility solutions.
- To manage the economic challenges and the transformation in the European automotive industry, Bosch is planning to provide vocational training programs for its employees, with a focus on new technology fields, as a strategic initiative to secure jobs and position the company for a successful future.
- In an effort to maintain its competitiveness in the financial aspect of the business, Bosch is considering to invest a significant portion of its resources into enhancing vocational training for its workforce, prioritizing sectors where the company expects growth, such as semiconductor production and electric vehicles.
