German auto supplier Bosch to cut 5,500 jobs in further sign of carmakers' woes
Germany's technology and services company Bosch is cutting its automotive division workforce by as many as 5,500 jobs in the next several years, in another sign of the headwinds hitting the German and global auto industries
FRANKFURT, Germany (AP) — Germany's technology and services company Bosch said Friday it planned to reduce its automotive division workforce by as many as 5,500 jobs in the next several years in another sign of the headwinds hitting the German and global auto industries.
The company cited stagnating global auto sales, too much factory capacity in the auto industry compared with sales prospects and a slower than expected transition to electric-powered, software-controlled vehicles.
The news comes two days after Ford Motor Co. announced plans to drop 4,000 jobs in Europe, and with Volkswagen employees threatening work stoppages over what they say management has told them are plans to close as many as three factories in Germany. Revenue at Stellantis, created through the 2021 merger of PSA Peugeot and Fiat Chrysler Automobiles, tumbled 27% in its most recent quarter that ended this fall.
Auto sales have slowed this year in Europe as consumers stung by inflation hold back on spending, while automakers have sunk billions into developing electric cars only to see slower sales than expected and new competition from cheaper Chinese brands. The German government abruptly cancelled purchase incentives at the end of last year, sending electric vehicles sales in that country down by 27% over the first nine months of this year.
