The automotive electronics giant confirmed the layoff of 1,200 people!
Abstract: Germany's Bosch AG (Bosch) has confirmed that the company will cut 1,200 jobs under its umbrella and is also the largest consumer of automotive chips.
*: Bosch Automotive.
Handelsblatt reported that the biggest reason for Bosch's dismissal was that the development of driverless technology was much slower than expected, with 950 jobs to be cut in Germany alone, and 1,200 employees in the software and electrical division would be laid off in the next three years in order to cope with the continuous decline in costs and economic growth.
"This shift will slow down due to a recession caused by factors such as constant energy and daily necessities, as well as rising inflation," Bosch said in a statement. A spokeswoman said that there had been no consultations with employee representatives, and that the affected part had been informed of the plan some afternoon before.
Bosch said it had not yet made a final decision on how many employees to lay off, and that the Bosch plant in Germany would be forcibly laid off by the end of 2027. In addition, it intends to cut 1,500 jobs at two factories in Germany.
Chart: Bosch becomes the largest automotive chip manufacturer.
According to the analysis of semiconductor experts, due to the decline in the penetration rate of fuel vehicles and electric vehicles, some traditional major users - tier1 will have a decline in demand, while the demand for chips for the entire electrification and intelligence will increase, but orders for these products will be transferred to more rapid tier1, vehicle manufacturers and new players.
The report points out that Europe's largest economy is facing a tougher test in 2024 due to growing market demand and continuous consumer credit charges. The reduction in production will have a knock-out for companies such as Bosch, Continental, and ZF, which are struggling to transition to electric vehicles.
Bosch's announcement comes at a difficult time for the other two major automakers. According to a spokeswoman for the German Labor Council, ZF is planning to close two plants in Germany, cut 12,000 jobs and move some functions to cheaper locations. At the same time, in order to improve the competitiveness of its auto business, Continental is also considering selling its assets and cutting thousands of jobs.
*: Bosch AG in Germany.
There are reports of escalating tensions between ZF's managers and representatives of its employees, and the company is planning to drastically cut jobs and implement a restructuring by 2030.
ZF, which employs 165,000 people worldwide, says it will lose 12,000 people if the worst happens. On January 17, around 3,000 ZF workers poured into the streets of the city of Frederick in southern Germany to oppose the cuts in labor.
ZF said"We want to keep jobs, but we know that switching to electric vehicles alone will result in fewer jobs. "He also said that the production of parts for certain electric vehicles requires half as much manpower as for vehicles with internal combustion engines.