German technology group Bosch is preparing to shut down parts of its Power Tools division, affecting hundreds of employees.
The company confirmed plans to end production at its Leinfelden-Echterdingen headquarters near Stuttgart and at the Sebnitz plant in Saxony by the end of 2026. Around 500 jobs will be lost as operations are shifted abroad.
Limited options compared to automotive division
While Bosch’s automotive sector has been shielded by a 2023 agreement preventing compulsory redundancies until 2027, Power Tools staff do not enjoy such protections.
This means the company can legally terminate all employees in Leinfelden once the site closes, without a social selection process normally used to protect older or vulnerable workers.
Severance or termination
According to reports in the Stuttgarter Zeitung, employees in Leinfelden have been told that they will be offered a severance deal in mid-November 2025.
Workers will then have four weeks to decide. Those who refuse to sign the agreement will be dismissed by 31 December 2026 – under less favorable conditions.
The severance package includes a transfer company scheme and one-time payouts, with amounts based on age, salary, and years of service.
The maximum payout is capped at €250,000. Employees who sign quickly can receive a bonus on top of the standard payment.
Workforce reaction and broader context
The decision has triggered concern among staff, as roughly 230 employees are directly affected at Leinfelden.
The lack of alternative positions within the division has limited prospects for relocation inside Bosch.
By contrast, the automotive division – where 13,000 jobs are also being cut – must negotiate socially acceptable solutions due to its binding agreement with unions.
The strategy resembles other recent restructuring moves in the German car industry. For instance, Ford has also offered high severance payments at a German site, with incentives for early acceptance.
About Bosch Power Tools
- Company name: Robert Bosch Power Tools GmbH
- Headquarters: Leinfelden-Echterdingen, Baden-Württemberg
- Employees: 18,700 (2024)
- Revenue: €5.1 billion (2024)
- Parent group: Robert Bosch GmbH
