Bosch plans to cut 750 jobs at its Abstatt site in Germany, according to a report cited in the source. The automotive supplier pointed to growing competition from Chinese companies and the transfer of some systems development to its Chinese location, where it works with Chinese customers.
Chinese automakers have increasingly become the first customers for new technologies, including electronic steering and braking systems. As more development work takes place closer to those customers, some customer-facing tasks are disappearing from Abstatt, Bosch divisional finance chief Mohammed Abraham told the newspaper.
Abraham said Bosch needs to adjust its structures and costs to secure Abstatt’s role over the long term. The site is nevertheless expected to continue operating as a development center.
The planned cuts add to a previously announced reduction of 900 jobs at Bosch’s Nuremberg location. Together, the two measures bring the planned job reductions in the company’s German mobility division to 1,650, for a total of 23,650 positions.
Germany’s automotive industry is facing pressure from competition in and from China, US tariffs and low profit margins on electric vehicles. Bosch has already cut thousands of jobs in recent years and announced further reductions.
Sources: FAZ.