Updated 11/23/2024 – 8:24 a.mReading time: 2 min.
Clearcutting at Bosch: The automotive supplier wants to cut thousands of jobs. Almost 4,000 jobs are expected to be lost in Germany.
In view of the crisis in the automotive industry, the supplier Bosch wants to cut more jobs than previously known. In the vehicle software business alone, there is a need to adapt 3,500 jobs by the end of 2027 – around half of them in Germany, a spokeswoman said. In addition, around 2,000 positions are available at the Hildesheim and Schwäbisch Gmünd locations in the coming years. In total there are 3,750 jobs in Germany.
According to the information, the figures are planning. Exact figures are part of the negotiations with employee representatives, which are now set to begin. The dismantling should be made as socially acceptable as possible. The agreement concluded in mid-2023 continues to apply, which excludes operational dismissals in the supply division in Germany until the end of 2027, and in some cases even until the end of 2029. At the end of 2023, a good 72,000 of the approximately 134,000 Bosch employees in this country were working in this area.
The “Cross-Domain Computing Solutions” division, which is responsible for assistance systems and automated driving, for example, is most affected by the current plans. By the end of 2027, 3,500 jobs will be lost worldwide, around half of them in Germany. According to the works council, this concerns the locations Leonberg, Abstatt, Renningen and Schwieberdingen in Baden-Württemberg and Hildesheim in Lower Saxony.
In addition, around 750 jobs are to be eliminated at the Hildesheim plant, where Bosch produces products for electromobility, by 2032 – a large part of them (600) by the end of 2026. There are also savings plans for the division that produces steering systems for cars and trucks. Up to 1,300 jobs are to be cut at the Schwäbisch Gmünd site between 2027 and 2030, more than a third of the employees there.
How is the shift towards electric vehicles affecting employment opportunities in the automotive industry?
Interview between Time.news Editor and Automotive Industry Expert
Editor: Welcome, everyone, to this special segment of Time.news. Today, we’re diving deep into a pressing issue currently shaking the automotive industry: Bosch’s announcement to cut around 5,500 jobs, with a significant portion of that loss occurring in Germany. Joining us is Dr. Klaus Schneider, an expert in automotive supply chain dynamics. Thank you for being here, Dr. Schneider.
Dr. Schneider: Thank you for having me. It’s a pleasure to discuss such an important topic.
Editor: Let’s get right into it. Bosch is well-known as a leading automotive supplier. What factors are driving this decision to cut jobs, especially in the vehicle software business?
Dr. Schneider: The automotive industry is undergoing a remarkable transformation. With the shift towards electric vehicles, digitization, and increased competition, companies like Bosch are reevaluating their operations. The decline in demand for traditional automotive parts, coupled with the rising need for advanced software systems, has created an imbalance. By restructuring, Bosch hopes to realign its workforce with these evolving demands.
Editor: You mentioned electric vehicles and digitization. How do you see these trends influencing employment in the automotive sector?
Dr. Schneider: Great question. As the industry transitions to electric vehicles, the skill sets required are changing. The demand for software developers, data analysts, and engineers with expertise in battery technology is increasing. However, this means that traditional manufacturing jobs, especially those related to internal combustion engines and older technologies, are becoming less relevant, leading to job cuts like those we’re seeing at Bosch.
Editor: It’s alarming to hear that almost 4,000 of these job cuts will happen in Germany. How does this impact the local economy and communities?
Dr. Schneider: The impact on local economies can be quite profound. Job losses can lead to decreased consumer spending, affecting local businesses and services. Additionally, regions heavily dependent on the automotive industry may experience higher unemployment rates, which can strain social services and create long-term economic challenges. It’s crucial for affected employees to receive support in transitioning to new roles that align with emerging technologies.
Editor: What are some strategies that firms in the automotive sector like Bosch can implement to support workers during this transition?
Dr. Schneider: Companies should focus on reskilling and upskilling their workforce. Investing in training programs that prepare employees for jobs in growing fields is essential. Collaborating with educational institutions for specialized courses in software engineering, EV technology, and data analysis can also help. It’s about turning challenges into opportunities for those willing to adapt.
Editor: What does this mean for the future of the automotive supply chain? Are we likely to see more companies following Bosch’s lead?
Dr. Schneider: Absolutely; we are entering a period of significant transformation. As companies adapt, we can expect more job realignments as firms strive for efficiency and relevance in a rapidly changing landscape. The supply chain will need to become more agile and integrated, with a greater focus on technology and sustainability.
Editor: As we wrap up, what would your message be to the workforce facing uncertainty during these transitions?
Dr. Schneider: Change is undeniably challenging, but it also presents opportunities. Resilience is key. Embrace lifelong learning, stay adaptable, and seek support. The future might indeed be uncertain, but those who are proactive in developing new skills will find pathways to new career opportunities.
Editor: Thank you, Dr. Schneider, for your insights on this critical issue. It certainly brings to light the complexities of change within the automotive industry and the importance of support for those affected.
Dr. Schneider: Thank you for having me. It’s crucial we continue these conversations as we navigate through these transitions in the automotive landscape.
Editor: That’s it for today’s interview. Thank you to our audience for tuning in. Stay informed and engaged as we continue to cover changes in the automotive industry and beyond.