According to Reuters, on December 11, Frank Sell, Vice Chairman of the Supervisory Board and Head of the Labor Council for Bosch's Key Mobility Solutions division, stated that a series of recently announced layoffs at Bosch has placed approximately 8,000 to 10,000 jobs in Germany at risk. Bosch currently employs around 135,000 people in Germany.
Frank Sell noted that Bosch's overall layoff plans have been difficult for employees to accept. When asked whether Bosch employees might go on strike, similar to Volkswagen Group workers, he said that labor representatives and unions are working on an action plan for 2025 and do not rule out the possibility of strikes.
Stefan Grosch, a member of Bosch's management board responsible for human resources, told reporters in a call that layoffs are necessary to ensure Bosch's competitiveness. He added that Bosch is not alone; the entire German automotive industry is feeling the impact. European automakers are grappling with weak demand for cars and a slower-than-expected transition to electric vehicles. Meanwhile, German automakers are facing high costs and fierce competition from Chinese rivals.
Grosch mentioned that Bosch's Supervisory Board will meet on December 13 to discuss the issue further. He emphasized that the rapid changes in the automotive industry require Bosch to regularly assess its capacity, but the company aims to carry out layoffs in a socially responsible manner.
Bosch is not the only Tier 1 automotive supplier in Europe to announce layoffs this year. Several major European Tier 1 suppliers have announced plans to cut over 50,000 jobs globally in 2023, including at least 20,000 in Germany and 10,000 in other parts of Europe. According to lobbying group CLEPA, European automotive suppliers have cut a total of 86,000 positions since 2020, including during the COVID-19 pandemic.
Pedro Pacheco, an analyst at U.S. consultancy Gartner, explained:
"Layoffs among Tier 1 automotive suppliers are typically concentrated in two key areas: electrification and software. These are the new technology sectors where automakers have promised significant investment, but progress has been slower than expected, now directly affecting suppliers. The Chinese market demonstrates the impact of advancements in electrification and software, whereas European brands have fallen behind in this area, creating a ripple effect felt by suppliers."
