German automotive supplier Bosch plans to lay off 5,000 employees, a spokeswoman said on Friday.

The planned job cuts come as German auto companies push to reduce costs in order to stay competitive in the international market.

What do we know about the job cuts at Bosch?

Bosch’s spokeswoman said that some 3,800 of the job cuts are to be made in Germany.

She added that the exact number of layoffs will be negotiated in talks with workers’ representatives.

In a separate statement, Bosch said it was having to make significant investments in new technologies.

“We must adapt our structures to the changing market environment and reduce costs sustainably to strengthen our competitiveness,” Bosch manager Stephan Hölzl said.

The firm also pointed to overall stagnation in the market.

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

Workers’ council head decries plans as ‘slap in the face’

According to Bosch, manufacturers need significantly fewer parts to make electric vehicles, also making the process less labor-intensive. 

Bosch said it also planned to cut up to 1,300 jobs between 2027 and 2030 at its division that makes steering systems for cars and trucks, which is based in Swäbisch Gmünd in the southwestern German state of Baden Württemberg.

The firm had already announced plans in December 2023 to lay off 1,500 workers.

The head of the workers’ council for Bosch’s automotive division in Germany, Frank Sell, called the planned layoffs a “slap in the face” and vowed resistance to the move.

Crisis in German auto industry

The crisis has hit a number of other German manufacturers, with ZF, Continental and Webasto also announcing layoffs.

Volkswagen (VW) has said it plans wide-reaching plant closures and layoffs in order to reduce labor costs. The company has cited difficulties breaking into the competitive electric vehicle market.

On Thursday, workers’ representatives urged VW to strike a deal and threatened potential industrial action starting in December if talks fall through.

Last month, the European Union increased tariffs on Chinese-imported electric vehicles to as much as 45.3%.

sdi/dj (AFP, dpa, Reuters)