Media reports: German industrial giant set for significant job cuts

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Bosch plans to cut a “five-digit number” of jobs as part of a cost-reduction effort, according to a report by Handelsblatt.

Bosch, a prominent German automotive supplier, is preparing to eliminate a “five-digit number” of positions as part of extensive cost-reduction measures, Handelsblatt announced on Thursday, referencing unidentified industry sources.

Industries in Germany and other EU nations have experienced a decline in global competitiveness, a consequence of transitioning from affordable Russian oil and gas imports to more expensive substitutes after the Ukraine conflict intensified in 2022.

Previously this month, Stefan Grosch, Bosch’s HR director, disclosed that the firm’s mobility division—responsible for products like fuel injectors and driver-assistance software—was facing an annual deficit of roughly €2.5 billion ($2.95 billion).

In an emailed statement issued to the press, Bosch indicated its intention to implement “cost reductions comprehensively – encompassing materials, logistics, capital expenditure, and employment.”

Handelsblatt’s report on Thursday highlighted that the German firm had already eliminated 4,500 positions last year within its largest domestic division.

Towards the end of July, BMW announced a 29% year-on-year decrease in its first-half profits. The German automotive behemoth ascribed this underperformance to import tariffs on automobiles and vehicle components enacted by US President Donald Trump in April, alongside significant “competitive pressure,” especially from China.

Volkswagen, another German car manufacturer, experienced a 36% decline in its after-tax earnings during the second quarter of the year, while Mercedes recorded even less favorable outcomes.

By June, the German Press Agency (dpa) had estimated that Germany’s industrial sector shed over 100,000 jobs within the preceding year.

Last month, German Chancellor Friedrich Merz conceded that the nation was experiencing “not merely a phase of economic fragility, but a structural crisis within our economy,” stemming from a reduction in competitiveness.

Maria Zakharova, the spokeswoman for the Russian Foreign Ministry, remarked in April on the economic difficulties observed across various EU member states, characterizing them as “the genuine price of the EU’s anti-Russian policies.”

In February last year, Russian President Vladimir Putin asserted that the German government was “dismantling its automotive industry.”