Bosch to axe 13,000 jobs in Germany as Tesla, BYD gain; Trump tariffs bite

Bosch said the cuts were necessary due to weak demand, rising costs and intensifying competition in the global auto market

Bosch has reportedly announced plans to cut 13,000 jobs in its mobility division in Germany as part of efforts to save €2.5bn ($2.94bn). The engineering group said the cuts were necessary due to weak demand, rising costs and intensifying competition in the global auto market, according to a report by BBC.

 

Bosch employs nearly 418,000 people across the world. The report cited the company as saying that the reductions will take place across roles in administration, sales, development and production at sites including Feuerbach, Schwieberdingen, Waiblingen, Bühl and Homburg. Discussions with affected staff will begin immediately.

 

And this doesn’t appear to be the last of it. BBC quoted Stefan Grosch, Bosch board member and director of industrial relations, as saying that further job losses were unavoidable. “Regrettably, we will not be able to avoid further job cuts beyond those already communicated. This hurts us greatly, but unfortunately, there is no alternative,” he said.

   

However, it added that its operations would be “continually assessed” based on customer demand and market developments.

 

“The global vehicle market continues to see subdued development,” the company said in a statement, adding that it faced a “cost gap” of €2.5bn in its automotive business. To address this, it plans to reduce spending “at all levels as quickly as possible” and scale back investments in production facilities and buildings.

 

Competition and tariffs weigh on business 

The pressure is being exerted on Bosch from rivals such as Tesla and China’s BYD, both of which have gained ground in the global car market in recent years. And the bite of US President Donald Trump’s tariff wars has also increased for the company.

 

Trump introduced a 15 per cent tariff on European Union exports to the US as part of his trade policy aimed at narrowing America’s trade deficit. While the tariff is lower than those applied to some other countries, Bosch said it has added to the company’s costs and made it “impossible to maintain its current high headcount.”

 

German auto sector under strain 

The announcement comes as Germany’s auto industry, once a cornerstone of its economic strength, has been facing a sharp downturn in its fortunes in the last few years. Car manufacturing accounts for about one-fifth of the country’s total industrial output and generates around 6 per cent of GDP when the wider supply chain is included, according to a report by global analytics firm Capital Economics. The sector employs about 780,000 people directly and supports millions of other jobs in Germany.

 

The slowdown has also hit profitability. In the first nine months of 2024, the three biggest German carmakers each reported pre-tax profits down by about a third compared to the previous year, according to the BBC.

 

Electric transition adds pressure 

German automakers have poured billions into developing electric vehicles, but the market has not grown as quickly as expected. At the same time, foreign competitors have expanded aggressively, challenging the dominance of German firms.

 

With demand weakening, profits falling, and trade tensions adding uncertainty, Bosch’s cuts highlight the scale of the difficulties now facing the German car industry.