Bosch to Slash 13,000 Jobs in Bold Bid to Save Billions

Global engineering powerhouse Bosch has unveiled plans to cut 13,000 jobs in Germany as it races to close a €2.5 billion (£2.06bn) cost gap in its struggling mobility division.

The drastic move comes amid intensifying competition from rivals such as Tesla and China’s BYD, a sluggish global vehicle market, and mounting costs driven in part by US President Donald Trump’s tariffs on European exports.

Bosch’s mobility arm, which supplies vehicle parts and cutting-edge software, has been hit hard by the slowdown. The company admitted that it must act “as quickly as possible” to slash costs, with measures that include cutting jobs, scaling back investment in production facilities, and shelving plans for new buildings.

“Regrettably, we will not be able to avoid further job cuts beyond those already communicated. This hurts us greatly, but unfortunately there is no alternative,” said Stefan Grosch, Bosch board member and director of industrial relations.

Tough Cuts Across Germany

The layoffs will affect staff in administration, sales, development, and production across Bosch sites in Feuerbach, Schwieberdingen, Waiblingen, Bühl, and Homburg. Despite the sweeping cuts in Germany, Bosch confirmed that UK operations remain safe for now—though the company warned it will “continually assess” global operations in line with market demand.

A Shifting Auto Landscape

At the end of 2024, Bosch employed a staggering 418,000 people worldwide, but the German giant is being forced to adjust as foreign competitors tighten their grip on market share. Once the pride of Germany’s industrial strength, the domestic auto industry has seen a sharp decline, with companies like Bosch struggling to balance rising costs with falling demand.

The US tariffs—15% on EU car exports—have further squeezed profitability, adding to what Bosch calls an “impossible environment” for sustaining its current headcount. While the levy is lower than the tariffs imposed on some countries, Bosch said the ripple effects across the global economy have been profound.

Next Steps

Bosch has pledged to begin consultations with affected employees immediately, stressing that while the decisions are painful, they are essential to securing the company’s long-term competitiveness.

Despite the setback, Bosch remains determined to reinvent itself for the future, with executives vowing to drive efficiency and adapt quickly in a rapidly changing automotive market.