Bosch, the prominent German engineering and technology company, has indicated it will not rule out workforce reductions or facility closures as part of a restructuring of its struggling Mobility Solutions division. Stefan Grosch, Bosch’s Director of Labor Affairs, stated in an interview with the Frankfurter Allgemeine Zeitung, that while the company remains committed to socially responsible solutions, unavoidable consequences may arise depending on the specific circumstances. This includes the potential for job losses tied to site closures and the possibility of relocating production to meet customer demands, particularly in consideration of evolving tariffs and trade dynamics.
The announcement follows a previous declaration that Bosch plans to eliminate a further 13,000 positions within the Mobility Solutions division by the end of 2030, bringing the total job cuts within this division over the coming years to over 22,000. The reductions are largely impacting German locations where Bosch previously employed around 70,000 individuals.
Grosch emphasized that inaction is not an option, citing intensified price competition and postponements in orders related to new electronic architectures, electric mobility components and automated driving technologies. Demand forecasts have failed to materialize as anticipated.
Responding to criticism suggesting a gradual and delayed disclosure of the crisis’s severity, Grosch denied any deliberate obfuscation. He explained that the company’s diverse business units necessitate tailored responses and underscored the need for transparency to ensure all employees understand the urgency of the situation and the imperative to maintain site competitiveness.
Despite these challenges, Grosch reaffirmed Bosch’s commitment to an existing agreement that prevents job cuts at German Mobility Solutions locations until the end of 2027. He reported a constructive working relationship with the company’s central works council.
Looking ahead, Grosch cautioned employees to prepare for fundamental changes. He noted a growing proportion of revenue derived from electronics and software, coupled with a decreasing share of value creation from traditional combustion engine technology. While Bosch anticipates growth as a company, employment may not increase proportionally. The shift in automotive innovation towards China necessitates a renewed focus on competitiveness and a return to the innovation that has historically driven Bosch’s and Germany’s economic strength.