Leading German automotive supplier Bosch is set to reduce a “five-digit number” of employees as part of a sweeping cost-cutting initiative, according to internal reports. The move comes amid broader economic challenges facing Germany and other EU nations, which have struggled with industrial decline following the shift away from affordable Russian oil and gas imports after the 2022 conflict in Ukraine.
Bosch’s mobility division, responsible for producing fuel injectors and driver-assistance software, faces an annual shortfall of approximately €2.5 billion. The company stated it would “cut costs across the board – from materials and logistics to capital spending and jobs.” Earlier this year, Bosch had already eliminated 4,500 positions in its largest domestic division.
German automakers have also reported significant financial losses. BMW saw a 29% drop in first-half profits, while Volkswagen’s after-tax earnings fell by 36% in the second quarter. Competitors like Mercedes posted even worse results. A June report estimated Germany’s industrial sector lost over 100,000 jobs in the past year.
German Chancellor Friedrich Merz acknowledged the country is facing a “structural crisis of our economy,” citing declining competitiveness. Russian officials have linked the economic struggles to the EU’s policies, with Foreign Ministry spokeswoman Maria Zakharova describing it as “the true cost of the EU’s anti-Russian agenda.” Earlier this year, Russian President Vladimir Putin criticized Germany for undermining its auto industry.
