Bosch, one of the world’s largest engineering and technology companies, has announced it will cut 13,000 jobs in Germany as part of a drastic cost-saving initiative. The company said the move was necessary to bridge a €2.5 billion (£2.06bn) cost gap in its mobility division, which supplies parts and software to the global automotive industry.
The announcement marks one of the most significant workforce reductions in Bosch’s recent history and reflects the mounting challenges faced by the German auto industry. The company said the layoffs would primarily affect roles in administration, sales, development, and production across facilities in Feuerbach, Schwieberdingen, Waiblingen, Bühl, and Homburg.
Bosch blamed several factors for the cuts, including rising competition from electric vehicle makers such as Tesla and China’s BYD, as well as weakening demand for traditional vehicle parts. It also cited higher costs linked to U.S. President Donald Trump’s 15% tariffs on European exports.
While lower than tariffs imposed on other trading partners, Bosch said the duties had added to a difficult business environment, making it “impossible to maintain its current high headcount.”
“The global vehicle market continues to see subdued development,” the company said in a statement, pointing to a sharp decline in demand that has forced it to cut investments in production facilities and buildings.
Stefan Grosch, Bosch board member and director of industrial relations, said the decision was deeply regrettable but unavoidable. “Regrettably, we will not be able to avoid further job cuts beyond those already communicated. This hurts us greatly, but unfortunately there is no alternative,” he said.
Bosch confirmed that no jobs in the UK would be affected by this announcement. However, the company noted that its operations would be “continually assessed,” depending on customer demand and global market trends.
The cuts come as Germany’s automotive sector, once a symbol of industrial strength, faces a period of decline. Increasing pressure from global competitors, sluggish demand for combustion-engine components, and the rising costs of transitioning to electric mobility have placed immense strain on legacy manufacturers and suppliers.
Bosch employs around 418,000 people worldwide as of December 2024, and while the layoffs represent a fraction of its global workforce, they signal growing instability in an industry undergoing profound structural change.
The company said it would begin talks with affected employees immediately and work with unions and works councils to manage the transition. Still, industry analysts warn the cuts may only be the beginning of deeper restructuring if the global auto market continues to stagnate.
With tariffs, inflationary pressures, and fierce international competition shaping the industry’s future, Bosch’s announcement underscores the increasingly precarious position of Europe’s carmakers as they fight to hold onto global market share.