German automotive supplier Bosch plans to cut 5,500 jobs amid a growing crisis in the automotive industry, a spokeswoman said on Friday.

More than two-thirds of these, some 3,800 jobs, will be in Germany, she said, as the company sees a further “need for adjustment.”

The figures are based on plans but exact numbers are to be negotiated with employee representatives, with talks set to begin.

The Cross-Domain Computing Solutions division, which is responsible for assistance systems and automated driving, for example, is most affected.

By the end of 2027, 3,500 jobs in the division will be lost worldwide, around half of them in Germany.

According to the works council, this involves the sites in Leonberg, Abstatt, Renningen and Schwieberdingen in the southern state of Baden-Württemberg, and in Hildesheim in Lower Saxony.

By 2032, around 750 further jobs will be cut at the Hildesheim plant, where Bosch manufactures products for electromobility, 600 of them already by the end of 2026.

There are also cost-cutting plans for the division that produces steering systems for cars and lorries. Up to 1,300 jobs will go at the site in Schwäbisch Gmünd, also in Baden-Württemberg, between 2027 and 2030. This is more than a third of the workforce there.

The supplier attributed the downsizing to the crisis in the automotive industry.

“Global vehicle production will stagnate this year at around 93 million units, if not decline slightly compared to the previous year,” Bosch said.

A slight recovery at best is expected in the coming year amid considerable overcapacity in the industry. Competitive and price pressure has also intensified.

According to Bosch, manufacturers need significantly fewer parts for electric vehicles, for example, which is leading to overstaffing.

Moreover, the market for future technology is not developing as Bosch expected, with demand for driver assistance systems and solutions for automated driving falling significantly short.

Many such projects are currently being postponed or cancelled by manufacturers, the company said.

In the steering division, Bosch is now struggling with increased competition and plans in response to bundle functions and reduce costs.