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Bosch is facing an unprecedented crisis and will cut more than 5 jobs. The transition to electric vehicles, falling demand and overcapacity in the automotive sector are forcing drastic changes.
The news that shook the market: Bosch, one of the most traditional giants in the global automotive industry, revealed that it will carry out a mass layoff of more than 5 thousand employees, with significant impacts in Germany.
But what is behind this drastic decision? Although the crisis in the automobile sector is pointed out as one of the causes, the truth is that transition to electric vehicles is radically changing the landscape and forcing companies like Bosch to adapt quickly. However, is the situation really as simple as it seems?
The crisis is far from being an isolated phenomenon: the global automotive industry faces one of the most turbulent moments in its history.
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The decline in sales of combustion-powered cars, the growing demand for electric vehicles and the scenario of production overcapacity are strongly impacting major automakers and component suppliers.
The case of Bosch, which announced the cut of 5,5 jobs, is a direct reflection of these changes and has generated major repercussions in the sector.
Massive cuts at Bosch: more than 5 jobs to be eliminated
The decision was announced by a company spokesperson at the end of November and had a great impact.
According to Bosch, the cuts are part of a plan strategic adjustments necessary to face the crisis faced by the company, caused by the transition to vehicle electrification and changes in the automotive technology market.
A big number of cuts will occur in Germany, where the multinational has some of its main production units, located in regions such as Leonberg, Abstatt, Renningen and Schwieberdingen, in the state of Baden-Württemberg.
Other impacts will also be felt in Hildesheim, in Lower Saxony, where Bosch manufactures products for the electromobility.
But what is behind such a radical measure? For many, the answer lies in the growing transformation of the automotive sector.
The transition to electric vehicles is forcing automotive parts and technology suppliers to completely restructure themselves.
A demand for traditional parts for combustion cars is falling, while the need for components for electric cars decreases.
Bosch, for example, had already announced previous cuts in its auto parts division., but the magnitude of the current layoffs reveals the depth of the crisis that is unfolding.
Employee reaction: resistance and protests
The announcement of cuts at Bosch generated a huge wave of dissatisfaction among employees.
Frank Sell, head of the works council at Bosch's automotive division, was not shy about criticizing, calling the cuts "a slap in the face" for the company's workers.
The outrage is not only due to the magnitude of the layoffs, but also due to the way the company is dealing with the transition to electric vehicles and the reorganization of the automotive market.
Although the exact number of layoffs still depends on negotiations with employee representatives, the social and economic impact of the measure is already palpable.
Sectors that will feel the impact the most include the division Cross-Domain Computing Solutions, which develops driver assistance and automated driving systems.
About 3,5 jobs will be eliminated by 2027 in this division. Half of the cuts will occur in Germany.
Furthermore, car driving division will also suffer significant cuts, with the elimination of 1,3 thousand jobs between 2027 and 2030.
the factory Hildesheim, for example, will face a reduction in 750 vacancies until 2032, with 600 of them taking place by 2026.
These decisions reflect the difficulty of adapting to the new reality of the automotive market., marked by lower demand for parts and components.
The crisis in the automotive sector: a global reality
These cuts are just a small sample of a broader crisis hitting the global automotive industry.
Bosch, for example, saw global vehicle production stagnate in 2024, with a timid recovery expected for the following year.
The reason for this stagnation? Reduced demand for electric vehicle parts, since the production of these cars requires fewer components than traditional combustion-powered models.
Additionally, there are several leisure, companies in the sector face a intense competitive pressure, which forces cost reduction and intensification of demands for lower prices.
The impact of this on component factories has been devastating, with several innovation projects being delayed or cancelled.
Adapting to the new reality: what is Bosch doing to survive?
With this difficult scenario, the Bosch has no choice but to adapt to the new reality of the automotive market.
To this end, the company seeks alternatives to reduce its costs, promoting a concentration of functions among workers and closing production units that are no longer viable.
According to the company, the cost reduction is the main strategy to overcome the crisis and remain competitive in the global market.
But the transition to electric vehicles is not the only challenge facing Bosch.. The company also suffers from the drop in expectations in relation to technologies such as driver assistance and automated driving.
Many of these projects, which were once essential to the future of the industry, are now being postponed or even cancelled by car manufacturers, forcing Bosch to rethink its long-term strategies.
The impact on Brazil: the reflection of the German crisis
Although the job cuts from Bosch mainly affect Germany, crisis in the automotive sector has global repercussions.
Bosch, which also has operations in Brazil, faces a scenario of reduced demand for traditional automotive parts and consequently the transformation of the supplier market in the country.
This could directly affect Brazilian companies that depend on Bosch for components and systems.
A transition to electric vehicles and decrease in the production of traditional vehicles can impact negatively Brazilian suppliers, who will need to adapt quickly to this new reality.
Bosch in Brazil may also suffer from reduced demand for parts and components for combustion vehicles, which could lead to job cuts or restructuring in the future.
What will be the future of Bosch and the automotive industry?
The crisis in the automotive sector is far from being resolved. The transition to electric vehicles is radically changing the market, forcing companies like Bosch to adapt quickly.
The reduction of jobs and the restructuring of companies are reflections of a scenario in which electrification is seen as the solution to the sector's challenges.
But will this transformation be enough to guarantee the future of Bosch and other companies in the sector?
What do you think about Bosch’s decisions? Are the transition to electric vehicles and job cuts the only way to ensure the survival of major automotive companies? Leave your opinion in the comments!
They destroyed the gas pipeline that supplied cheap energy to Germany and the blame for the crisis at Bosch, Volkswagen, Thyssen, Mercedes is all due to the electrification of vehicles! LOL
They want to make us look like fools all the time. Unfortunately, they deceive us a lot with these lies.
Friend... electric cars, in addition to using fewer parts, are simpler, which makes it easier to compete. Bosch, always at the forefront of technology, is seeing its advantage evaporate.
In the same way that BOSCH developed accessories for conventional cars, it can develop accessories for electric cars.