German industrial giant Bosch is reportedly planning a new and extensive round of job cuts.
According to reports in the German business press, the company is considering eliminating a five-digit number of positions worldwide.
The move would come on top of previously announced reductions and would represent one of the largest restructuring measures in the company’s recent history.
Previous downsizing already significant
Just last year, Bosch announced that it would cut around 9,000 jobs in Germany as part of its ongoing restructuring strategy.
In earlier years, the supplier had already eliminated more than 11,000 jobs across its global automotive division, including 4,500 in Germany alone.
The mobility business remains Bosch’s largest sector, accounting for around two-thirds of the company’s total turnover of €90.3 billion in the last fiscal year.
Billions in savings required
The current plans are linked to a far-reaching savings programme.
Stefan Grosch, Bosch’s labour director, recently confirmed in an interview with a German daily that the group needs to save approximately €2.5 billion.
Industry insiders state that such a target can only be reached with further significant reductions in headcount.
Profitability pressures despite strong revenues
Although Bosch continues to generate high revenues, profitability remains under pressure. Last year, the company reported a return on sales of 3.8 percent.
For 2024, the goal was to reach seven percent in the automotive division – a target that will not be met, as has often been the case in previous years.
As a foundation-owned company, Bosch stresses the need to secure sufficient profits to maintain its financial independence. Company management argues that the strict savings policy is unavoidable under the current economic and competitive conditions.
