The automotive electronics giant laid off 1,200 people, and the industry ushered in an adjustment
The industry is facing a restructuring with the automotive electronics giant laying off 1200 people!
On January 18, a spokeswoman for Bosch (Germany), one of the main customers of automotive chips, confirmed that the company would lay off 1,200 employees.
*:Bosch. According to Handelsblatt, the main reason for Bosch's layoffs some time ago was that the development of driverless cars was progressing much slower than expected. The German company is laying off 950 jobs and will cut another 1,200 over the next three years to combat rising costs and slow growth.
Bosch said in a statement"Weak economies, coupled with energy and daily necessities***, have delayed this transition process. A Bosch spokesman said that no consultations had been held with labor representatives, although they had been informed of the plan a few days earlier afternoon.
Bosch said it has not yet made a final decision on the number of layoffs and that it will not force layoffs at its plant in Germany until the end of 2027. Bosch also plans to lay off 1,500 jobs at two German plants.
Figure: Bosch is the world's largest automotive chip manufacturer.
Chip Guru said that due to the popularity of fuel vehicles and electric vehicles, some major customer demand for traditional Tier1 chips will decline, while the demand for chips for the entire electrification and intelligence will rise, but orders for this type of chips will flow to Tier1, OEMs and new players who are moving faster.
The report notes that automakers in major European economies will face difficulties in 2024 due to slowing demand and rising consumer credit costs, making their situation even more difficult. The production cuts will affect companies such as Bosch, Continental and ZF, which are working to make the transition to electric vehicles.
At the same time as Bosch made the announcement, two other major electrical companies were also in trouble. A spokeswoman for a subsidiary of ZF in Germany said that ZF is considering closing two factories in Germany, laying off 12,000 jobs and moving some functions to lower-cost countries. Across the ocean, Continental is considering assets and laying off thousands of jobs to make its automotive business more competitive.
*: Bosch plant in Germany Bosch plant in Germany.
As a producer of transmissions, chassis components and shock absorption systems, the company is considering mass layoffs and restructuring in 2030.
Around 3,000 ZF workers took to the streets in Friedrichshafen, southern Germany, on January 17 to oppose the wage cut, which is the case for ZF, which employs around 16.6 million people worldwide"Worst-case scenario"。
ZF said:"We want to keep our jobs, but we also realize that by switching to electric vehicles, more jobs can be created. ZF added that some components of electric vehicles are produced by half of the vehicles with internal combustion engines.