Bosch Mobility to Cut 13,000 Jobs by 2030 in $2.5 Billion Restructuring

Bosch Mobility has recently unveiled a comprehensive restructuring program with the aim of closing a significant €2.5 billion annual cost gap. The company anticipates that approximately 13,000 jobs will be cut globally by the year 2030 as part of this initiative. This strategic move by Bosch is a response to the persistent pressures in the automotive market and the necessity to realign operations to adapt to future technologies.

For readers of eeNews Europe, this announcement sheds light on the formidable challenges confronting European automotive suppliers. These companies are tasked with striking a delicate balance between substantial investments in research and development for electrification and automation, while also navigating competitive forces and evolving global demand.

Market Pressures and Cost Challenges

Bosch has identified several factors driving the need for restructuring, including subdued global vehicle demand, regulatory ambiguities, and slower-than-anticipated adoption of electromobility and automated driving technologies. The company has also observed a shift in demand patterns away from Europe, intensifying competition for facilities based in the region.

To address the €2.5 billion gap, Bosch has outlined a series of measures, including leveraging artificial intelligence in manufacturing and engineering processes, reducing material and equipment expenses, and enhancing logistics and supply chain efficiencies. Despite these efforts, Bosch executives have acknowledged that job cuts are inevitable.

“We urgently need to enhance our competitiveness in the Mobility business and continuously drive down our costs. We are employing various strategies to achieve this. Unfortunately, we will have to implement further job reductions beyond those already communicated,” stated Stefan Grosch, a member of the Bosch board of management and director of industrial relations.

Impact at Site-Level in Germany

The planned job reductions will have a significant impact on Bosch’s operations in Germany, particularly within its Power Solutions and Electrified Motion divisions. Key sites that will be affected include Feuerbach, Schwieberdingen, Waiblingen, Bühl/Bühlertal, and Homburg, with varying numbers of job cuts at each location.

Despite the workforce reductions, Bosch has reaffirmed its commitment to Germany as a core industrial hub, emphasizing that efficiency improvements are crucial for sustaining competitiveness and securing future business opportunities.

Looking Towards the Future

Bosch executives have stressed the urgency of the restructuring efforts, highlighting that any delays could exacerbate the situation. Dr. Markus Heyn, a member of the Bosch board, pointed out the challenges posed by geopolitical developments and trade barriers, underscoring the need for companies to adapt to increased competition.

“I firmly believe that Bosch Mobility can thrive in the fiercely competitive global market. However, we must take action now to pave the way for our success and utilize our internal resources to bolster our competitiveness, as time is of the essence,” Heyn emphasized.