German Auto Supplier Bosch To Cut 5,500 Jobs

Bosch, Germany's leading technology and services company, has announced that it plans to reduce its automotive division workforce by up to 5,500 jobs over the coming years.

Auto sales in Europe have slowed this year as inflation-weary consumers reduce spending. I Photo: Bosch Auto Parts

The move reflects the challenges facing the German and global auto industries, David McHugh reported for the Associated Press (AP).

The company attributed the job cuts to stagnating global auto sales, excess factory capacity relative to demand, and a slower-than-anticipated transition to electric and software-controlled vehicles.

The announcement follows Ford Motor Co.'s decision to cut 4,000 jobs in Europe earlier this week and reports of Volkswagen employees threatening strikes over potential plans to shut down up to three factories in Germany.

Meanwhile, Stellantis, formed by the merger of PSA Peugeot and Fiat Chrysler Automobiles, reported a 27% drop in revenue for the quarter ending this fall.

Auto sales in Europe have slowed this year as inflation-weary consumers reduce spending.

Automakers have invested heavily in developing electric vehicles, but sales have lagged behind expectations amid growing competition from cheaper Chinese brands. Additionally, Germany’s abrupt cancellation of purchase incentives at the end of last year led to a 27% decline in electric vehicle sales over the first nine months of 2024.