German technology giant Bosch has announced plans to cut over 7,000 jobs worldwide, primarily in Germany, as it faces economic challenges and a lowered growth forecast for 2024.
The company’s CEO, Stefan Hartung, stated that Bosch will not achieve its economic targets for the year and further staffing adjustments may be necessary.
Bosch: Economic Forecast and Job Cuts
Bosch reported revenue of nearly €92 billion in 2023, with an expected return on sales of 4% this year, down from 5% last year.
The company aims to reach a 7% return on sales by 2026, but current economic conditions have made this target challenging.
As a result, Bosch has decided to cut jobs through severance programs, primarily affecting its automotive supply division, tools division, and BSH household appliances subsidiary.
The decision to cut jobs comes amid an industry-wide crisis, compounded by a slowdown in the economy and uncertainty about the transition to electric vehicles (EVs).
Bosch, a major supplier to the automotive industry, is facing mounting challenges that have led to the need for cost-cutting measures.
Stefan Hartung, CEO of Bosch, acknowledged the difficult situation and stated, “At this point, I cannot rule out that we will have to further adjust our staffing resources”. He emphasized that the company is committed to maintaining its financial stability and achieving its long-term goals despite the current challenges1.
Acquisition Plans and Impact on Employees
Despite the job cuts, Bosch is moving forward with its largest-ever acquisition, planning to purchase Irish company Johnson Controls for approximately €7.4 billion.
This strategic move aims to strengthen Bosch’s position in the heat pump and air-conditioning industry.
The acquisition is expected to be completed within 12 months.
The job cuts have raised concerns among employees, with protests reported across Germany.
Workers in the automotive supply division have expressed frustration over plans to reduce collective working hours and potential layoffs.
The company’s HR director, Stefan Grosch, mentioned that the job cuts are necessary due to weak demand and the need to reduce costs.
Bosch’s decision to cut 7,000 jobs reflects the challenges faced by the company in a difficult economic environment.
The company remains focused on its long-term goals and strategic acquisitions, aiming to achieve financial stability and growth despite the current setbacks.
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