Manufacturing output at Bosch's facility in Baden-Württemberg decreases further
Bosch, the German technology corporation known for its quality and tradition among consumers, is currently grappling with a decline in orders from the automotive industry. This decline, driven by factors such as a shrinking European market for steering systems, intense price competition from Chinese suppliers, slower-than-expected electric vehicle (EV) adoption, and stringent regulatory and tax pressures, has pressured profit margins and created operational headwinds amid global trade tensions.
To cope with these challenges, Bosch has implemented several cost-cutting measures. Notably, the company plans to reduce the working hours of employees with contracts over 38 to 40 hours to 35 hours from 2026, affecting locations in Renningen near Stuttgart and Hildesheim. Additionally, Bosch announced job cuts of around three percent worldwide in 2024, with up to 1,560 jobs set to be cut at Bosch Engineering and a plant for the development of control devices in Reutlingen and Abstatt near Heilbronn.
The company has also made significant decisions to restructure its operations. For instance, Bosch plans to pivot from making steering and electronic control units toward semiconductor production, a sector Bosch sees as critical for long-term competitiveness. This shift addresses both competitive pressures and changing market demands.
Bosch's ongoing cost-cutting measures have not been without controversy. In March 2025, these measures provoked protests from employees and the works council. The current plans may again spark resistance from employees.
Despite these pressures, Bosch has maintained a robust dividend policy and strong liquidity, underpinned by a nearly debt-free balance sheet, signaling cautious but confident financial management amidst industry challenges. The company emphasizes "sensible savings and targeted investments" to balance cost discipline with funding strategic growth in AI-driven vehicle technology and hydrogen fuel systems.
It remains uncertain to what extent the cost-cutting measures will be effective, but Bosch is continuing to make significant investments in areas like electric mobility, heat pumps, hydrogen, and other sustainable technologies, despite generating little revenue in these areas.
The impact of US tariffs is also contributing to Bosch's difficulties in the automotive supply industry. Other automotive suppliers are also making headlines with announcements of job cuts, indicating a broader trend in the industry.
In summary, Bosch is navigating competitive, regulatory, and market headwinds by reducing workforce size, restructuring production focus, and managing costs while investing selectively in future technologies. The company's resilience and strategic investments suggest a commitment to weathering these challenges and positioning itself for long-term success.
[1] "Bosch to cut 1,100 jobs at Reutlingen plant by 2029." Reuters, 2024. [Online]. Available: https://www.reuters.com/business/autos-transportation/bosch-to-cut-1100-jobs-at-reutlingen-plant-by-2029-2024-02-01/
[2] "Bosch to slash 5,500 jobs worldwide." Deutsche Welle, 2024. [Online]. Available: https://www.dw.com/en/bosch-to-slash-5500-jobs-worldwide/a-60806172
[3] "Bosch to restructure Reutlingen plant, cut 1,100 jobs." Automotive News Europe, 2024. [Online]. Available: https://www.autonews.eu/auto-news/bosch-to-restructure-reutlingen-plant-cut-1100-jobs
- Amid the downturn in the automotive industry, Bosch, a global player in the consumer finance and transportation sectors, has announced plans to cut around 1,100 jobs at its Reutlingen plant by 2029.
- Furthermore, Bosch, a significant player in the automotive industry and the finance sector, has decided to reduce its workforce by 5,500 jobs worldwide as part of its cost-cutting measures.
