Auto parts supplier Robert Bosch plans to cut 5,500 jobs worldwide, mainly in Germany, as auto supply chain problems spread across the industry.
Bosch, the world’s largest automotive supplier in terms of revenue, will cut positions related to both the production of autonomous cars and traditional automobiles in Germany, according to a statement from the IG Metall union. A Bosch spokeswoman confirmed that the company plans to eliminate 5,500 jobs worldwide, including 3,800 jobs in Germany.
“The automotive industry is suffering from significant overcapacity,” Bosch said in a statement, adding that the actual number of reductions will be determined in negotiations with worker representatives. “Competition and price pressure continued to intensify.”
Bosch, privately held, is one of the biggest names in the automotive sector, with its components being used in practically all 1.5 billion vehicles in operation in the world. Making everything from spark plugs to automated driving software, the company has invested heavily in new technology but is suffering from falling demand for new cars.
Auto production in Europe has yet to recover its pre-pandemic peak of about 16 million vehicles, and executives are now scaling back operations to prepare for permanently lower demand. Bosch said global car production could decline this year and recover only modestly in 2025.
The company’s planned cuts are the latest sign of the pain spreading across the auto parts industry, a sector that employs about 1.7 million workers across the European Union. Companies such as Continental AG and ZF Friedrichshafen AG, as well as a number of smaller companies, are reducing employment in response to slowing demand.
Automotive manufacturers are also reducing their workforce. On Wednesday, Ford Motor Co. announced plans to eliminate an additional 4,000 jobs in Europe, about 14% of its local workforce. Volkswagen AG is considering measures including unprecedented factory closures in Germany. Mercedes-Benz Group AG is also planning cost cuts.
