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Bosch Announces Significant Cuts in Its Mobility Division, Mainly Impacting Factories in Germany Amid Growing Chinese Competition, Weak Demand in the European Market, and High Energy and Labor Costs.
Robert Bosch GmbH will eliminate 13,000 jobs in its mobility division by 2030, about 3% of the global workforce, in response to growing competition and weakening in the European automobile market.
The measure, announced this Thursday (25), mainly affects units in Germany and aims to reduce an annual deficit of € 2.5 billion in the auto parts operation.
Cuts Concentrate in the Stuttgart Hub
The deepest adjustments hit Bosch’s historical base in the Stuttgart region.
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In Feuerbach, where the company produces components for diesel and has invested in hydrogen, approximately 3,500 jobs will be cut by 2030 due to underutilization of the factories.
In Schwieberdingen, the Power Solutions, Electrified Motion, and Mobility Electronics areas are expected to cut about 1,750 positions, pressured by a weaker order book and the slow adoption of new technologies.
Still in the Stuttgart area, Bosch plans to close the Waiblingen factory, which employs around 560 people and produces connectors for the automotive industry, by 2028 after years of declining volumes.
Other locations will also be reduced: in Bühl, specializing in small electric drives, approximately 1,550 jobs are expected to be eliminated.
In Homburg, where diesel truck parts still predominate, around 1,250 positions will be cut.
Why the Company Is Tightening the Belt
The management attributes the plan to a combination of weak demand, trade barriers, and more aggressive competition — especially from Chinese manufacturers with cheaper batteries, motors, and electronics, which compress traditional suppliers’ margins.
The cost environment remains pressured by tariffs and higher energy prices since the Ukraine invasion.
“Geopolitical developments and trade barriers, such as tariffs, are creating significant uncertainties that all companies must deal with,” stated Markus Heyn, global head of mobility.
According to him, Bosch expects “even more intense competition” and aims to position its units to capitalize on growth niches.
German Industry Under Stress
The Bosch move deepens the pressure on the German industrial base, which faces production adjustments, cost renegotiations, and efficiency programs.
Volkswagen and Porsche have cut shifts and revised projections amid weakness in China and the impact of tariffs in the United States.
VW is set to pause lines at EV plants in Germany, while Porsche has delayed electric launches and cut its margin forecast for 2025.
Meanwhile, suppliers such as Continental and ZF Friedrichshafen are accelerating expense and workforce cuts.
Hydrogen and Electrification Advance Less Than Expected
In addition to the weak vehicle cycle, Bosch acknowledges that the hydrogen market ramp-up in Europe has been slower than anticipated, maintaining idle capacity at sites that received recent investments.
The company stated it needs to “reduce costs as quickly as possible” to regain competitiveness and, therefore, combines workforce reductions with cuts in materials, operations, logistics, and capex in buildings and facilities.
What Happens to the Workers
The company has reported that it has communicated with employees and representatives and said it seeks “socially responsible solutions” when possible, such as internal relocation and partial retirement programs.
Nevertheless, management maintains that swift action is necessary to close the cost gap in mobility and ensure long-term viability.
“Germany remains essential for Bosch,” declared labor director Stefan Grosch.
“But we need to become more efficient to maintain our position in global competition.”
Size of Bosch and Investment Front
Bosch, a privately held company and one of the largest names in auto parts in the world, employed about 417,900 people at the end of 2024 and reported € 90.3 billion in revenue last year.
The Mobility division comprises over 230,000 employees and remains the group’s main arm.
In recent years, the company has directed resources toward software, electrification, and hydrogen, while adjusting legacy combustion operations.
Political-Economic Context: “Made for Germany” and Competitiveness
Domestically, Chancellor Friedrich Merz‘s government is trying to revitalize the business environment with deregulation measures and investment incentives.
In July, 61 companies announced the “Made for Germany” initiative, with € 631 billion in investments by 2028, presented at the chancellery and supported by Bosch.
The effort seeks to signal regulatory predictability and accelerate digitalization, infrastructure, and innovation — points seen by the sector as crucial for recovering productivity and competitive energy costs.
Next Steps of the Restructuring
Bosch has made it clear that, in addition to the 13,000 cuts planned, it will continue to evaluate structures, the supply chain, and investment levels to align the operation with the new level of demand and prices.
The stated goal is to close the division’s deficit and sustain profitability in a market with ongoing pressure for price and technology.
The announcement also mentions that the adjustments will be distributed over several years, with gradual effects in the affected locations until 2030.
In light of this scenario of tougher global competition, tariffs, and slower technological transitions than anticipated, how are Europe’s automotive supply chains expected to reorganize to preserve skilled jobs without losing momentum in innovation?
Se intende que a melhores produtos mais baratos e competitivo…que o consumidor adota no seu bolso…. show…se intende que produtos ruins e mais caros . Não são competitivo para o mercado consumidor… show
Complicado baixar custos,e evitar concorrência, quem paga a conta são os funcionários, que perdem seus empregos.
Na guerra da Ucrânia depois da própria qem se deu mal foi a Alemanha….Pagando energia cara