Bosch plans to eliminate about 13,000 additional positions in its auto-parts arm, citing intensifying competition and a weak European car market.
In a statement, the German major said the economic backdrop has been under “great pressure for some time,” adding that market conditions for Bosch Mobility have recently become “even more challenging”.
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The company added that “structural and personnel adjustment measures are unavoidable,” with an expected reduction of around 13,000 roles, primarily at mobility sites in Germany.
These include Feuerbach, Schwieberdingen, Waiblingen, Bühl/Bühlertal and Homburg.
The timetable for these changes will vary and stretch to the end of 2030.
Bosch’s headcount as of 31 December 2024 was 417,859, compared with 429,416 a year earlier, down 2.7%.
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By GlobalDataIt pointed to “ongoing structural changes and very high price and competitive pressures in the global automotive industry,” resulting in a cost gap of around €2.5bn annually worldwide in the mobility business.
Bosch said it would act “as quickly as possible” to close the shortfall, deploying “all levers to reduce costs at all levels”.
It has also identified potential savings through productivity gains from artificial intelligence in manufacturing and engineering, lower material and equipment costs, reduced capital expenditure, and more efficient logistics and supply chains.
Robert Bosch member of the board of management and chairman of the mobility business sector Quotes Markus Heyn said: “Geopolitical developments and trade barriers such as tariffs lead to considerable uncertainty – and this is something that we, like all companies, have to deal with. We can expect to face even more intense competition.
“That’s why we’re aiming to seize growth opportunities wherever possible and make sure our Mobility locations worldwide remain viable. I’m convinced that Bosch Mobility can prevail in the highly competitive global market. But we have to pave the way for this now and use our own resources to secure our competitiveness, as time is pressing.”
Bosch reported consolidated sales of €90.34bn in 2024, down from €91.596bn in 2023, a decline of 1.4%.
Mobility revenue fell to €55.8bn from €56.2bn.
The overall profit after tax dropped to €1.33bn, a decrease of 49.5% from previous year.
