According to media reports, automotive parts giant Robert Bosch has announced plans to reduce the working hours of 450 employees in Germany starting next spring due to challenging economic conditions. Correspondingly, employee salaries will also be reduced.
A Bosch spokesperson stated that the company's German employees currently work 38 to 40 hours per week under their contracts. From March 1 next year, weekly working hours will be reduced to 35. The spokesperson also revealed that several Bosch locations in Germany will be affected, primarily in Stuttgart and Gerlingen.
In September, Bosch Chairman Stefan Hartung commented during the IAA Mobility show in Hanover that he expects global markets for light and commercial vehicles to grow very slowly this year and next. In Europe, car production is projected to fall short of expectations made five years ago by several million vehicles.
In October, Hartung told Germany's Tagesspiegel newspaper that he could not rule out further job cuts in Germany on top of the 7,000 layoffs already announced.
Bosch's latest measure to reduce working hours comes as Europe's automotive industry struggles with a downturn. With declining demand in the European market and fierce competition from China, several automakers have announced layoffs or plant closures in Europe. Volkswagen has asked German employees to accept a 10% pay cut and has threatened to close factories in Germany to lower costs, improve profits, and maintain market share.
Ford has also announced plans to lay off 4,000 employees in Europe, accounting for 2.3% of its global workforce of 174,000. Of these, 2,900 jobs will be cut in Germany, and 800 in the UK.
Additionally, reports indicate that Mercedes-Benz plans to reduce costs by billions of euros annually in the coming years. Struggles in the automotive industry are putting pressure on suppliers as well. Even Bosch, ranked as the top global supplier in the automotive industry, is not immune to these challenges.
