Bosch cuts 1,100 jobs, blames EV slowdown and price pressure

Bosch, one of the world’s largest automotive suppliers, announced on Tuesday that it will cut 1,100 jobs at its Reutlingen plant in southern Germany, citing uncompetitive manufacturing conditions and a weakening market for steering systems. The move marks the latest in a series of workforce reductions across Germany’s auto sector, which continues to grapple with rising global competition and the uneven pace of electrification.

According to Bosch’s official statement, the layoffs will affect around one in ten employees at the Reutlingen site, with roles impacted across both assembly lines and administrative functions. The company did not specify whether the cuts would be achieved through compulsory redundancies or via voluntary programmes such as early retirement.

Dirk Kress, head of Bosch’s electronics division, said the decision was difficult but necessary.

“The European market for steering systems is driven by price and hard fought with new suppliers,” Kress explained. “The required cuts are not easy but they are essential to secure the future of the site.”

The company said it would shift the Reutlingen site’s focus towards semiconductor manufacturing, a segment where Bosch sees long-term strategic growth. “Manufacturing steering systems at the Reutlingen site is no longer competitive,” the company stated, highlighting declining sales volumes as a key factor. Bosch cited the slow uptake of electric vehicles (EVs) in Europe as one of the reasons behind falling demand for traditional steering systems.

The announcement comes amid a broader contraction in the German automotive industry. Schaeffler and Continental, two of Bosch’s peers in the auto components sector, have also announced layoffs over the past year. Just last week, Porsche warned its workforce of a “serious situation” due to collapsing demand in China, one of Germany’s key automotive export markets.

Bosch had already unveiled a broader restructuring plan last November, when it said it would cut 5,500 jobs globally in response to changing market conditions and technological shifts. The latest 1,100 cuts at Reutlingen add to mounting concerns about employment stability in one of Germany’s most vital industrial sectors.

While Bosch remains committed to maintaining a strong manufacturing presence in Germany, Tuesday’s announcement underscores the economic and strategic pressures faced by legacy auto suppliers as they adapt to a rapidly transforming global market. The transition to electric mobility, coupled with cost pressures from emerging Chinese competitors, is forcing companies to rethink legacy operations, particularly in areas that are no longer cost-effective.

As of now, Bosch has not confirmed the timeline for the reductions or whether affected employees will be offered reskilling or redeployment options within other divisions of the company.