If even Bosch cuts thousands of jobs, it means that European automotive is going through an unprecedented storm
Bosch announces thousands of layoffs in Germany, a measure that reflects the harsh reality facing the automotive industry. The decline of diesel, slow electrification, and Chinese pressure reveal a sector in full transformation with increasingly tight margins.
The news that Bosch will cut thousands of jobs at its German plants is not just a simple workforce adjustment: it is a thermometer of the pressure that the entire automotive industry is under.
When a global giant with financial and technological muscle like Bosch admits it cannot maintain its employment level, the signal is clear: the sector is experiencing a moment of enormous tension.
The company has justified the decision in a “persistently difficult economic environment”, with a high level of competition and a slow evolution of new technologies. Mobility Solutions, Bosch's automotive division, sees how its traditional business is shrinking while future bets are not taking off at the expected pace.
The industrial paradigm shift is no longer an academic debate, but a direct blow to factories, jobs, and regional economies
Between the dying diesel and a slower than expected electrification
The underlying problem is structural. Bosch acknowledges that the demand for combustion engine components is collapsing, especially in diesel, while electrification and hydrogen technology are advancing with less momentum than calculated.
This unbalanced transition has left the company with oversized production capacity and investments in new areas that still do not generate the necessary return.
The result is a massive cut: the connection production in Waiblingen will be completely closed, with 560 fewer jobs. Stuttgart-Feuerbach will lose 3,500 positions, Schwieberdingen 1,750, and Homburg 1,250, including those from the closure of the historic ‘Werk West’ dedicated to diesel injectors. In total, thousands of workers from iconic regions for German automotive, such as Stuttgart and Saarland, will be affected.
The high cost of the technological transition does not come alone. Bosch also cites a “high level of competitive pressure”, especially from Chinese suppliers, and insufficient margins: in 2024 the group's profitability was just 3.8%, and for 2025 a sales increase of 2% is expected, reaching 57 billion euros. For a foundation like Bosch, which finances its own projects and seeks independence, this profitability is insufficient.
A symptom of the sector's illness
Bosch's decision adds to a long list of cuts in German manufacturers and suppliers. Digitalization, electrification, and automation reduce the workforce needed for production and, at the same time, require massive investments. Workforces designed for the combustion engine era are becoming increasingly difficult to sustain.
Union reactions have not been long in coming. IG Metall has described the plan as a “catalog of terror” and accuses the company of short-term planning and not securing the future of the affected centers. But beyond the protest, the reality is that if Bosch, a global technology benchmark, cannot escape this tsunami, European automotive faces a monumental challenge.
What happens at Bosch is not an exception: it is a warning. The industrial paradigm shift is no longer an academic debate, but a direct blow to factories, jobs, and regional economies. And when the German giant coughs, the entire industry realizes that the fever is collective.
Fuente: Auto motor und sportFotos: Bosch Media
