Bosch to cut 13,000 jobs to save €2.5 billion as auto market slows
German engineering giant plans broad cost reductions and lower investments after market softness and rising competition, with no UK job losses announced
Bosch said it will cut about 13,000 jobs as part of a plan to save roughly €2.5 billion in costs, targeted primarily at its mobility division in Germany, which supplies vehicle parts and software. The company attributed the move to a stagnating market and intensified competition from global rivals, alongside higher costs linked to the broader trade environment. Bosch said there is a significant cost gap in its auto business and that it would pursue cost reductions at all levels to close the gap as quickly as possible.
The job reductions are expected to affect roles across administration, sales, development and production at several sites, including Feuerbach, Schwieberdingen, Waiblingen, Bühl and Homburg. Bosch said it would begin discussions with affected employees immediately and would continue to assess its operations as demand and market conditions evolve. In addition to personnel cuts, the group signaled that investments in production facilities and buildings would be scaled back amid a sharp decline in demand for its products.
As of December 2024, Bosch employed about 418,000 people globally. The company confirmed that no jobs in the United Kingdom would be affected by the latest announcement, though it noted that operations would be continually reviewed as market conditions change. Bosch emphasized that the decision was driven by the need to remain competitive in a challenging global environment and to protect its long-term viability in its automotive business.
The announcement comes at a time when Germany’s once-booming car industry is under pressure from both domestic and international contenders. Tesla and China’s BYD have been expanding their footprint in Europe, eroding traditional market share for established incumbents. In addition, the company cited costs arising in part from U.S. policies, including tariffs on EU exports to the United States, as a factor contributing to the heightened cost burden on the group’s auto operations. Bosch stressed that the current environment and rising expenses make it impractical to maintain the previous levels of headcount.
Industry observers note that the moves reflect a broader push by automakers and suppliers to align capacity with demand as the market remains subdued. Bosch said it intended to begin talks with affected workers promptly and would provide support and transition options in line with its obligations and local practices. The company added that further job cuts beyond those already communicated could not be ruled out, underscoring the ongoing challenges facing the global vehicle market.
The scale of the planned reductions highlights how a combination of competitive pressure, tariff-related cost pressures and slowing demand has forced manufacturers to reexamine staffing and investment plans. While Bosch seeks to protect its competitive position and long-term profitability, the immediate impact will be felt at facilities across Germany where mobility-related operations are concentrated. Analysts will be watching closely to see how the company adjusts production capacity and whether additional actions are required as market conditions evolve.