Restructuring Bosch Mobility Will Cut 13,000 Jobs By 2030

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Bosch Mobility has announced plans to cut approximately 13,000 jobs worldwide by 2030. The measure is part of a comprehensive restructuring program aimed at offsetting an annual cost difference of 2.6 billion US dollars. German locations are particularly affected.

In its press release, Bosch cited factors responsible for the restructuring. The currently weak global demand for vehicles is one of the main reasons. Additionally, regulatory uncertainties and the slower-than-expected adoption of electromobility and automated driving are contributing to revenues falling short of earlier expectations. The company also pointed to a shift in demand away from Europe, which is intensifying the competition for locations within Europe.

To close the 2.6 billion US dollar gap, Bosch plans a series of measures according to its own statements. In addition to the planned job cuts, the company intends to focus more on the use of AI in manufacturing and development. The program also includes reducing material and equipment costs as well as achieving additional efficiency gains in logistics and the supply chain.

A comprehensive reduction in personnel, however, is unavoidable despite everything. “We urgently need to work on our competitiveness in the mobility business and permanently reduce our costs further,” says Stefan Grosch, member of Bosch's management board and director of labor relations, in the company's press release. “We are pulling many levers to achieve this. Unfortunately, we will not be able to avoid additional job cuts beyond those already announced.”

More Than 8,000 Jobs Affected in Germany Alone

The job cuts will particularly impact Bosch's German locations. A focus will be on the areas of Power Solutions and Electrified Motion. The following job reductions are among those planned:

• Feuerbach: Around 3,500 jobs, including 1,500 in the plant for drive components. Bosch justifies this with the declining demand for diesel engines and the slow progress in the expansion of hydrogen technology;
• Schwieberdingen: Around 1,750 jobs in the areas of sales, procurement, administration, and development;
• Waiblingen: Complete cessation of production of connection technology, affecting 560 employees;
• Bühl/Bühlertal: Around 1,550 jobs in the development and production of electric drives;
• Homburg: 1,250 jobs, with activities within the Power Solutions business unit to be consolidated.

Despite these cuts, Bosch reaffirmed its commitment to Germany as an industrial core location and emphasized that efficiency improvements are essential for maintaining competitiveness and securing future orders.

Bosch executives emphasized the urgency of the restructuring and stressed that delays could worsen the situation. “Geopolitical developments and trade barriers such as tariffs are creating significant uncertainty—and we, like all companies, must deal with that. We have to anticipate even more intense competition,” said Dr. Markus Heyn, a member of Bosch's management board.

"I am convinced that Bosch Mobility can hold its own in the fiercely competitive global market. But we must now pave the way and use our own resources to secure our competitiveness, as time is of the essence," he added.

The announcement once again highlights the pressure currently faced by the automotive industry, particularly regarding the declining demand for combustion engines. In 2019, the entire Robert Bosch Group had announced plans to create 25,000 new jobs by 2024. The company primarily aimed to radically expand its expertise in the areas of software development and artificial intelligence. However, these plans were abandoned or at least suspended in the wake of the COVID-19 pandemic in 2020. The current restructuring announcements represent a stark shift in direction. (sg)

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