Bosch layoffs: Another major German manufacturer plans more than 8,000 job cuts

London
CNN
—

Thousands of jobs are at stake at German industrial giant Bosch in another blow to the country’s economy.

A company spokesperson told CNN on Wednesday that it plans to cut about 8,250 jobs worldwide over the next few years. Aizkora will fall in what he calls the Mobility business sector, which supplies parts to automakers around the world, as the business grapples with sluggish demand, high costs and increased competition.

“The difficult economic environment and the continuous transformation of the automotive industry present great challenges to us – like other companies -. Remaining competitive under these conditions is important,” Bosch said in a statement.

“The mobility sector is undergoing a profound transformation,” added the company.

The planned cuts, some of which were announced earlier this year, represent nearly 2% of Bosch’s global workforce, which totaled more than 429,000 at the end of 2023.

The 138-year-old company also makes consumer goods, including refrigerators and coffee makers, as well as machinery for other businesses.

The news indicates Another blow to Europe’s biggest economy, where big-name manufacturers face a perfect storm of competition from Chinese rivals, traditional disadvantages such as high labor costs and high tax and energy costs, fueled by Russia’s full-scale invasion of Ukraine in 2022.

Last week, tens of thousands of workers at Volkswagen, Germany’s largest manufacturer, took part in strikes at factories across the country. The industrial action followed weeks of collective bargaining talks, with Volkswagen refusing to rule out mass layoffs and plant closures in Germany – drastic measures needed to boost its fortunes.

Last month, Thyssenkrupp, Germany’s largest steel producer, announced plans reducing 11,000 jobs by the end of the decade, approximately 40% of the workforce. The company cited, in part, a rise in cheap imports from Asia.

German economy it was reduced last year for the first time since the start of the coronavirus pandemic. He will be hired again this year, according to the latest predictions From the executive body of the European Union, the European Commission.

Olesya Dmitracova contributed to this report.