Bosch to lay off 7,000 employees amid lowered growth forecast

Bosch, the German automotive company has announced plans to lay off over 7,000 employees as it faces business challenges and a lowered growth forecast for 2024. This layoff primarily affects the automotive supply sector in Germany, as well as Bosch’s tools division and its BSH household appliances subsidiary. 

According to CEO Stefan Hartung, Bosch will fall short of its economic targets for 2024, citing a reduced return on sales expectation of 4% compared to last year’s 5%. Hartung stated that further job cuts might be necessary if the company's financial situation does not improve.

The decision aligns with recent trends across the European automotive industry, which is grappling with a challenging economic climate and uncertainties related to the transition to electric vehicles (EVs). In an effort to address these challenges, Bosch has also announced cost-cutting measures across its operations, with plans to continue reducing jobs through severance programs until 2027. The company had already reported weaker demand in the automotive sector, leading to announcements of global job reductions in recent months.

Despite these layoffs, Bosch is moving forward with its strategic acquisition of Johnson Controls, an Irish heat pump and air-conditioning manufacturer, for approximately 7.4 billion euros. The acquisition aims to bolster Bosch’s presence in the climate solutions market, with integration expected to complete within the next 12 months.

Bosch’s move adds to the mounting pressure within Europe’s auto sector, where companies like Volkswagen are also facing operational challenges and considering similar workforce reductions amidst lowered profit expectations.