The world’s largest supplier of car parts has been hit by weak demand, strong Chinese competition and slow transition to EVs.
Bosch has revealed it is likely to cut more jobs at its German plants than previously anticipated. The industrial giant’s car supplier arm believes between 8,000 and 10,000 jobs are at risk, according to the group’s vice chairman of the supervisory board Frank Sell, quoted by Reuters.
Employee representatives and unions are drawing up an action plan for 2025 that would not rule out strikes, he added.
CNN quoted the company’s spokesperson as saying that the company expects to cut 8,250 of its worldwide workforce over the coming years.
“The difficult economic environment and the ongoing transformation in the automotive industry are presenting us – like other companies – with major challenges. It is important for us to remain competitive under these conditions,” CNN quoted Bosch as saying in a statement.
Bosch announced a few weeks ago that it planned to cut some 5,500 jobs over the next several years, because of stagnant demand for cars and new technology.
The European car market is suffering, hit by weak demand, high production costs, Chinese competition and the slow transition to electric vehicles.
The Bosch Group employs around 135,000 people in Germany.
The company didn’t immediately respond to Euronews Business’ request for comment.
European car makers have been announcing a series of cost-cutting measures as they try to steer their way through the problems. However, production costs remain high, especially in Germany, and Chinese competition is squeezing margins which are already suffering because of the slow transition to electric vehicles.
Volkswagen is currently making headlines as thousands of its workers take industrial action as unions fight with management to avoid unprecedented plant closures, along with job and pay cuts.
