Bosch is about to lay off more than 8,000 employees

Above CNN, A spokesperson for the machinery and home appliance giant Bosch (Germany) said on December 11 that the staff reduction is taking place in the segment that specializes in providing components to global car manufacturers. This segment is facing difficulties due to weak demand, high costs and increased competition.

“The difficult economic environment and constant changes in the auto industry present us, as well as many other companies, with great challenges. It is important that we remain competitive in these conditions,” Bosch said in the announcement. They confirmed that the auto components segment will undergo a major reform process.

According to the plan, the company will reduce 8,250 jobs globally in the next few years.

The number of jobs cut is equivalent to 2% of the company’s global workforce. By the end of 2023, they have more than 429,000 workers.

The 138-year-old company also makes a variety of consumer goods, from refrigerators to coffee makers. They also make many types of machines for other businesses.

This is the latest negative news for Europe’s largest economy. Many famous German manufacturers have recently faced difficulties due to competition from Chinese competitors. They also have to deal with traditional disadvantages such as labor costs, high taxes, and rising energy prices after the Russia-Ukraine conflict in 2022.

Volkswagen – Germany’s largest car manufacturer – is conducting a major reform to reduce costs and increase competitiveness. In early November, this car company said it would reduce employee salaries by 10% to protect jobs and the company’s future. They also plan to close at least three factories in Germany and lay off tens of thousands of employees. Last week, tens of thousands of workers at this company went on strike.

Last month, Thyssenkrupp Steel – Germany’s largest steel company – announced plans to reduce 11,000 jobs by the end of this decade, equivalent to 40% of the workforce. They said the reason was partly the supply of cheap steel from Asia.

Last year, German GDP contracted for the first time since the pandemic appeared. According to forecasts by the European Commission (EC) in early November, this economy will continue to decline this year.