Bosch announces significant job cuts amid strategic shift
The crisis in the automotive industry is spreading more intensely. According to current reports, Bosch plans to lay off 7,000 employees working in plants in Germany, writes "Rzeczpospolita".
"Bosch will not achieve its economic goals in 2024," said Stefan Hartung, the CEO of Bosch. More than 7,000 job cuts are announced in Germany, and this number might be even larger. "At the moment, I cannot rule out that we will have to further adjust our staffing resources," says Hartung.
Bosch produces, among other things, discs, brake pads, sensors, and safety systems for the automotive industry.
In 2023, Bosch generated nearly 132 billion Canadian dollars in revenues. According to Hartung, this year's return on sales is expected to be 4 percent, although last year it was 5 percent, with a target of 7 percent by 2026.
Bosch lays off and acquires
"In recent months, Bosch has repeatedly announced plans to reduce jobs worldwide. In this case, it concerns more than 7,000 jobs in German locations, primarily in the automotive supply sector, but also in the tools department and in the BSH subsidiary dealing with household appliances," writes "Rz".
It reminds us that while announcing employment reductions, the company is also planning the largest acquisition in its history. Bosch wants to position itself better in the heat pump and air conditioning industry. Therefore, it acquired the Irish company Johnson Controls for 11 billion Canadian dollars.
