Bosch Cuts Working Hours and Layoffs Amid Economic Struggles

Bosch has announced plans to reduce working hours for 10,000 of its employees and lay off 5,550 workers as part of efforts to manage costs amid a challenging economic environment.

The company, one of Germany’s largest employers, cited ongoing difficulties in the automotive sector and the broader stagnation of Germany’s economy. Bosch employed 429,000 people globally by the end of 2023.

The automotive sector has been particularly impacted, with global vehicle production remaining stagnant and only modest recovery expected in 2025. Bosch's mobility division, which manufactures parts such as brakes and spark plugs for car manufacturers, is experiencing a slowdown. “We must adjust our structures to the changing market environment and reduce costs in the long term to strengthen our competitiveness and position the division for the future,” said Stephan Hölzl, Executive Vice President, Bosch's Cross-Domain Computing Solutions division.

The company is also facing reduced demand for automated driving solutions, which had initially been expected to grow more rapidly. This has compounded Bosch’s challenges in adapting to the current economic climate in Germany, which is grappling with its second consecutive year of negative economic growth.

In addition to the 10,000 employees whose working hours will be cut, Bosch had previously announced in October 2024 that it would lay off 7,000 workers to address ongoing financial challenges. The most recent round of layoffs, affecting 5,550 workers, follows a pattern seen across the German industrial sector.

Like other major companies in the region, Bosch is struggling to cope with rising energy prices, weaker demand in external markets, and increased competition from low-cost suppliers, particularly from China. In parallel, other German manufacturers, such as Volkswagen, are also pursuing aggressive cost-cutting measures. Volkswagen’s billion-dollar cost-cutting initiative is currently delayed due to disagreements with labor unions over potential job cuts and factory closures.