Engineering giant Bosch is to cut 13,000 jobs in Germany in response to market conditions in the vehicle manufacturing sector.
The company said the losses would be in its mobility division which provides vehicle parts and software, a sector subject to increased competition from firms such as China’s BYD and Tesla. Rising costs associated with US president Donald Trump’s tariffs were also to blame, said the firm.
Although no jobs in the UK would be affected by the decision, said Bosch, operations were “dependent on customer demand and market developments”, so labour force levels would be continually assessed.
Stefan Grosch, member of the Bosch board of management and director of industrial relations, said: “Regrettably, we will not be able to avoid further job cuts beyond those already communicated.”
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As of December 2024, the firm had a 418,000-strong workforce globally.
Roles in administration, sales, development and production were likely to be affected in Feuerbach, Schwieberdingen, Waiblingen, Bühl and Homburg locations.
Trump, who put a 15% tariff on the EU’s exports to the US, has wielded tariffs against major US trade partners in a bid to reorder the global economy and trim the American trade deficit.
Although the tariff is much lower than those imposed on some countries, Bosch said the global environment and high additional costs make “it impossible to maintain its current high headcount”.
The firm said it planned to begin discussions with affected employees immediately.
The IG Metall trade union, which represents workers across German industry, reacted strongly, saying it rejected the “historic scale” of the cuts.
Frank Sell, chairman of the works council for the Mobility division, recognised the deteriorating conditions in the sector and stated: “There is no question that the situation in the German and European automotive and supplier industry is very tense.”
“However, we firmly reject staff cuts on this historic scale – without simultaneous commitments to secure our locations in Germany.”
The union accused Bosch of gambling away trust and causing “social devastation in many regions.”
Nearly all auto manufacturers in Germany are looking to reduce headcount with Volkswagen, Mercedes, Ford, Audi, Daimler Truck all announcing plans to reduce costs in the past year.
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