Layoffs mount at Ford and Bosch: 1,000 jobs cut, €2.5bn shortfall

Ford Motor Co. and Robert Bosch GmbH are cutting more jobs in Germany, underscoring the pressure on Europe’s car industry as weak demand and rising costs weigh on production.

Ford said it would eliminate 1,000 positions at its Cologne electric-vehicle plant after demand for battery-powered models fell short of expectations. Bloomberg reported on Tuesday that the plant, which had been a cornerstone of the company’s European electric strategy, will scale back as sales of new EV models slow.

The reduction adds to a series of workforce adjustments at the Cologne site, which produces the Explorer and Capri sport-utility vehicles. The cuts illustrate the strain carmakers face in sustaining investment in electrification while consumer appetite remains muted.

Bosch deepens cost cuts

Bosch also announced deeper cost-cutting measures, warning that its Mobility division faces an annual shortfall of around €2.5 billion. Bloomberg reported that the supplier will step up restructuring, with additional job losses expected though no specific figure was given.

The company, the world’s largest automotive supplier, has already trimmed thousands of roles in Germany and abroad. Mounting competition, higher energy costs and slowing demand have combined to pressure margins across the business.

The dual announcements highlight the difficulties gripping Europe’s auto sector, where legacy carmakers and suppliers are navigating the transition to electrification amid faltering demand. High prices, limited charging infrastructure and broader economic uncertainty have curbed consumer uptake of EVs despite regulatory pressure to reduce emissions.

Earlier this month, Bosch Chief Executive Stefan Hartung described conditions as “cut-throat competition” that would continue into 2026. The company is seeking to balance investment in future technologies, including semiconductors and electrified systems, with immediate measures to shore up profitability.

Germany’s powerful labour unions are expected to challenge both companies’ restructuring plans, as past rounds of cuts have triggered negotiations over severance and redeployment. For Europe’s industrial base, the latest announcements underline the tension between long-term technological commitments and the near-term need to cut costs.

As Ford and Bosch adjust their strategies, the direction of Europe’s automotive transition remains uncertain. Companies are under pressure to maintain profitability while preparing for a future still defined by electrification, even as consumers hesitate to embrace it at the expected pace.