Leading German automotive supplier Bosch is set to reduce a “five-digit number” of jobs as part of a sweeping cost-cutting initiative, according to internal reports. The move comes amid broader economic challenges facing Germany and other EU nations, which have struggled with industrial decline following the shift away from affordable Russian oil and gas imports 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. The company stated in a press email that it would “cut costs across the board – from materials and logistics to capital spending and jobs.”
Handelsblatt reported that Bosch had already eliminated 4,500 positions last year within its largest division. Meanwhile, German automakers like BMW and Volkswagen have also faced severe financial setbacks, with BMW’s first-half profits dropping 29% year-on-year and Volkswagen’s after-tax earnings declining 36% in the second quarter. Mercedes similarly reported deteriorating 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,” citing diminished competitiveness. Russian officials have linked these struggles to the EU’s energy policies, with Foreign Ministry spokeswoman Maria Zakharova accusing the bloc of bearing the “true cost” of its anti-Russian stance. Earlier this year, Russian President Vladimir Putin criticized Germany for undermining its own auto industry.