Bosch to cut 1,100 jobs in Germany amid EV market slump and rising competition
The decision comes at the company battles a shrinking European market for steering systems, intensified by stiff price competition from Chinese suppliers and a slower-than-expected transition to electric vehicles (EVs).
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German auto parts giant Bosch announced on Tuesday that it will lay off 1,100 workers at its plant in Reutlingen, Southern Germany - impacting nearly one-tenth of the site's workforce. The job cuts will affect both assembly line employees and back-office roles, news agency AFP reported.
The decision comes at the company battles a shrinking European market for steering systems, intensified by stiff price competition from Chinese suppliers and a slower-than-expected transition to electric vehicles (EVs).
“The European market for steering systems is driven by price and hard fought with new suppliers,” Dirk Kress, head of Bosch's electronics division said in the report. “The required cuts are not easy, but they are essential to secure the future of the site.”
According to Bosch, manufacturing steering systems at the Reutlingen plant has become unviable. Instead, the facility will pivot its operations to focus on semiconductor production - a sector the company sees as critical to its long-term competitiveness.
While the company confirmed the layoffs, it has not specified whether the job reductions will come through voluntary measures such as early retirements or through compulsory redundancies, the report added.
This is not the first major workforce reduction at Bosch. In November 2024, the company announced plans to cut 5,500 jobs across the organisation.
Bosch’s move follows similar downsizing efforts across Germany’s automotive sector. Suppliers like Schaeffler and Continental have made significant cuts in the past year, and luxury automaker Porsche recently issued a stark warning to employees about weakening demand from China.
