The world's largest automotive components supplier Bosch is preparing for large-scale layoffs as part of adapting to market changes. The company's boss Stefan Hartung announced plans to cut 12,000 jobs worldwide, with about 7,000 of them in Germany, where much of Bosch's production capacity is located.
The move is due to several factors, including changes in consumer demand, the automotive industry's accelerated transition to electric vehicles and excess production capacity at the company's factories.
The cuts are part of Bosch's strategic plan aimed at maintaining competitiveness amid the transformation of the automotive industry. Despite the company's leading role in the traditional automotive industry, the challenges associated with the electrification of transportation are forcing us to reconsider our operating model and look for new growth opportunities.
At the end of 2024, Stephan Hartung said that Bosch would not be able to meet its previously set financial targets. As a result, the company decided to review its resource plans, including job cuts, to focus on long-term prospects.
Bosch is also investing heavily in research and development to strengthen its position in the field of electric mobility, including the production of batteries, software and other technologies of the future.