Bosch, the renowned German engineering and technology company, has indicated that drastic restructuring measures within its struggling Mobility Solutions division may include workforce reductions and potential shifts in production locations. While aiming for socially responsible solutions, the company has not ruled out the possibility of job cuts or relocating production to meet customer demands and navigate evolving trade considerations.
The company recently announced plans to eliminate an additional 13,000 positions within the Mobility Solutions division by the end of 2030. This announcement follows previous restructuring efforts, bringing the total number of job losses in the business area to over 22,000 in the coming years. The vast majority of these affected positions are located at Bosch’s German Mobility Solutions sites, which previously employed approximately 70,000 individuals.
Stefan Grosch, Member of the Bosch Executive Board, Labor Director, told the Frankfurter Allgemeine Zeitung that a ‘wait-and-see’ approach is not a viable option, citing intensified price competition and postponed orders for new electronic architectures, components for electric mobility and automated driving systems due to a lack of anticipated demand.
Addressing accusations of gradually disclosing the scale of the crisis, Grosch denied any deliberate tactic, emphasizing the need to respond to the distinct requirements of Bosch’s diverse divisions. He underscored the importance of maintaining site competitiveness and transparent communication to all employees given the pressing time constraints.
While acknowledging the challenging circumstances, Grosch affirmed Bosch’s commitment to an existing agreement that secures employment and prevents job cuts at German Mobility Solutions sites until the end of 2027. He also noted a positive working relationship with the central works council and called for continued dialogue.
Looking ahead, Grosch highlighted a shift in Bosch’s business model, anticipating a growing contribution to revenue from electronics and software, while the share derived from traditional combustion engine technology declines. This evolution implies that while the company overall may grow, job creation might not follow suit at the same rate. Furthermore, Grosch pointed to a current shift in innovation within the mobility sector towards China, highlighting the need for Bosch to bolster its own competitive edge and rediscover the innovative strength that previously defined the company and the broader German economy.
