Ford intensifies job reductions in Cologne: 1,000 positions eliminated
Bosch and Ford Announce Significant Job Cuts Amidst Industry Transformation
German technology and engineering company Bosch, and American automaker Ford, have announced plans for substantial job cuts in response to the ongoing transformation of the automotive industry.
In an interview with Stuttgarter Zeitung and Stuttgarter Nachrichten, Bosch's mobility chief Markus Heyn and board member Stefan Grosch revealed that the company is set to reduce its workforce, particularly in the supply sector. Since the end of 2023, Bosch has already implemented job-cutting programs, and further reductions cannot be avoided.
The exact number of jobs to be cut beyond the initial 1,000 is not yet known, but the company aims to reduce a total of 2,900 jobs by the end of 2027 as part of a larger project. Thousands of jobs are set to be lost worldwide, with many in Germany.
Bosch has been working on cost reduction for some time, but had not previously specified a specific cost-cutting target. The cost-cutting plan is currently being expanded, with discussions ongoing with employee representatives. As part of the plan, the company will switch from a two-shift operation to a single-shift operation in January, and employees are being offered severance packages or early retirement options.
Meanwhile, Ford has attributed its new job cuts to significantly lower-than-expected demand for electric passenger cars in Europe. If implemented, Ford will have approximately 7,600 employees by the end of the changes. The automaker has announced plans to cut an additional 1,000 jobs in Cologne due to weak demand for electric vehicles.
Porsche announced significant cost cuts affecting around 1,000 employees at its Leipzig site in recent months. Heyn stated that the entire industry is undergoing a comprehensive transformation, and maintaining competitiveness is necessary.
In the last decade, Ford had around 20,000 employees at the site, but at the end of the last decade, the number had already decreased to around 13,000. Cost savings will be achieved, in part, by reducing personnel.
Bosch, a supplier to the automotive industry, is making significant cost cuts of 2.5 billion euros per year. Heyn emphasised that the industry is facing a challenging time, but that the company is committed to navigating these changes and emerging stronger. Heyn stated, "The entire industry is undergoing a comprehensive transformation, and maintaining competitiveness is necessary."
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