Supplier Bosch Aims to Save Billions by 2030 – More Jobs at Risk

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The Bosch Mobility business division is set to save 2.5 billion euros annually. How many additional jobs are at risk remains unclear.

The supplier Bosch must make massive savings in light of the automotive industry crisis. The costs of the Mobility business division are to be reduced by 2.5 billion euros per year. This was announced by Mobility Head Markus Heyn and Bosch Labor Director Stefan Grosch in an interview with the "Stuttgarter Zeitung" and the "Stuttgarter Nachrichten."

The company has been working on reducing its costs for some time. However, the corporate management had not yet specified an exact savings target. Savings are to be made, among other things, in personnel. Further job cuts will be unavoidable, according to a statement.

"The entire industry is undergoing a comprehensive transformation, and this is a marathon," said Heyn. "We must continuously focus on how to maintain our competitiveness." Important first steps have been taken, but more must follow. According to Grosch, the cost gap is expected to be significantly reduced in the coming years and closed by 2030 at the latest. Many levers are being set in motion to achieve this: "We will make the necessary decisions this year and discuss them with employee representatives."

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Further job cuts in sight

Since the end of 2023, Bosch has implemented a number of job reduction programs – primarily in the automotive supplier sector. Thousands of jobs are to be cut worldwide, many of them in Germany. Grosch and Heyn did not specify how many additional positions are now at risk. However, they stated that they would adhere to the agreement excluding compulsory redundancies in the division in Germany until the end of 2027. Savings are also expected to come from material and energy costs, and productivity is to be increased.

The chairman of the overall works council for the supplier division, Frank Sell, stated: They are not turning a blind eye to the tense situation. However, there have already been extensive cost-saving measures. "We therefore expect the management to become specific about what is planned in a timely manner with this new announcement. Enough with the 'salami tactics.' The management must show employees the future of the division in Germany and work together with the works councils to develop solutions."

Mobility division aims to grow again despite the crisis

The automotive crisis is hitting Bosch hard. However, at the recent IAA mobility fair, the company announced that it expects some growth again in the supplier division. The revenue increase is expected to amount to slightly less than two percent this year. The company is growing despite stagnating global vehicle production, weak demand, and delays in electromobility and automated driving. In addition to drives, safety systems, steering and braking systems, and sensors, Bosch also supplies manufacturers with high-performance computers and software.