German auto-parts giant Robert Bosch announced plans to cut up to 5,550 jobs across its operations, citing challenges from subdued car sales, intense competition, and an industry-wide pivot to electric vehicles (EVs).

Bosch’s move comes as automakers and suppliers grapple with overcapacity and high costs during the ongoing transformation of the mobility sector.

The company revealed Friday that its cross-domain computing solutions division will see the largest reduction, with 3,500 jobs expected to be eliminated by 2027. Additionally, Bosch plans to cut 750 jobs at its electric-motor plant in Hildesheim, Germany, by 2032, and 1,300 positions in its steering division in Schwaebisch Gmuend between 2027 and 2030.

Bosch joins other major industry players in restructuring efforts. Earlier this month, auto-parts suppliers Michelin and Schaeffler announced plans to shut down factories and cut thousands of jobs across Europe. Automakers like Ford, Volkswagen, and Mercedes-Benz are also scaling back operations. Ford recently disclosed plans to eliminate 4,000 jobs in Europe, primarily in Germany and the U.K., while Volkswagen faces potential strikes over labor disagreements concerning restructuring efforts.

While essential for the industry’s future, the EV transition has progressed more slowly than anticipated, compounding financial strain on carmakers and their suppliers. Bosch emphasized that “the auto sector has significant overcapacity,” a sentiment echoed across the industry as companies aim to streamline costs.

Meanwhile, challenges in the broader mobility sector continue to grow. Swedish battery maker Northvolt filed for bankruptcy in the U.S., struggling under the weight of its rapid expansion. At the same time, Mercedes-Benz announced plans to reduce annual costs by billions without detailing specific measures.

As the automotive industry undergoes a profound transformation, suppliers like Bosch are feeling the ripple effects of shrinking margins, competitive pressures, and costly technological shifts, signaling an uncertain road ahead.