Bosch, the German manufacturer of autoparts is laying off about 1,100 workers from its plant in southern Germany. This round of layoffs will mainly affect assembly line and back-office roles. Almost one-tenth of its workforce will be laid off. The workforce may be trimmed by means of early/voluntary retirement options or compulsory redundancies. However, no official information has been shared in this regard.
The company has realised that it is no longer profitable to manufacture steering systems at its site given the slowing demand for electric vehicles (EVs). Therefore, the plant will shift its focus to manufacturing semiconductors.
“The required cuts are not easy, but they are essential to secure the future of the site,” he said, according to the news agency’s report.
In November last year, the German automotive components giant had announced plans to lay off 7,000 employees due to ongoing economic and business challenges. The job cuts at the time were to primarily affect positions in Germany, with a focus on the company’s automotive supply sector. Additionally, roles in Bosch’s tools division and its BSH household appliances subsidiary were also impacted by this decision.
At the time, the cuts were part of the company’s effort to address the challenges it had faced to reach financial targets for 2024. Further adjustments to staffing had not been ruled out then.
Despite the job cuts, Bosch had planned to move forward with its ambitious acquisition strategy. In its largest-ever acquisition deal, the company had announced that it was purchasing the Residential and Light Commercial HVAC businesses of Johnson Controls in an $8 billion agreement.
