Bosch Slashes Jobs Amidst Economic Struggle, Yet Salvages Some Positions
Job cuts loom for over a thousand workers in Baden-Württemberg as Bosch announces planned reductions.
The tech giant Bosch is in the throes of a major job cut, with over 1,000 employees on the chopping block, despite a recent positive turn of events. The economic hurdles have left Bosch with no choice but to tighten its belt.
However, the works council bared their fangs in the negotiations, managing to secure some victories for the employees.
The economy is kicking ass and taking names - Bosch must adapt
German companies have been battling the economy for months, with expenses such as energy, raw materials, and labor shooting through the roof, and a decline in demand in multiple sectors. Even global powerhouses like Bosch are being forced to resort to drastic measures to stay competitive in this cutthroat environment.
Once predicted to close its plants in Schwäbisch Gmünd and Hildesheim by 2024, Bosch now faces the grim reality of job losses. However, the works council snatched some victories from the jaws of defeat during the negotiations.
A breath of relief for 300 souls
Fortunately, Bosch's management decided to keep the Schwäbisch Gmünd location open. Both parties have agreed on a plan of action to help the plant weather the storm. Unfortunately, not all news is positive for the workers as a part of this plan involves job cuts. However, the works council managed to save jobs for hundreds of employees. Instead of the plant shutting down entirely, Bosch will continue operations with 1,700 employees. This arrangement also means that a further 1,150 jobs will be axed by 2030. On the bright side, apprenticeships in Schwäbisch Gmünd will remain intact. As for the Hildesheim location in Lower Saxony, the wait continues for news on how the site will be saved and jobs secured.
Sources:- [1] Bosch to invest €2.5 billion in autonomous technologies by 2027. (n.d.). Retrieved March 21, 2023, from https://www.bosch-press.com/en/press-release/bosch-to-invest-over-25-billion-in-ai-based-autonomous-driving-and-smart-manufacturing- [3] Bosch invests in electric mobility, IoT. (n.d.). Retrieved March 21, 2023, from https://www.bosch.de/en/about-us/company/press/press-releases/2019/bosch-invests-in-electric-mobility-iot/- [4] Bosch targets 3,800 job cuts in Germany by 2030 as part of global austerity plan. (n.d.). Retrieved March 21, 2023, from https://www.reuters.com/business/autos-transportation/bosch-targets-3800-job-cuts-germany-2030-part-global-austerity-plan-2022-12-01/- [5] Bosch to slash jobs in Germany as it rebalances its business model. (2022, December 01). Retrieved March 21, 2023, from https://www.ft.com/content/8f03ba8a-883a-4f29-b225-52f400dfb668
In the midst of economic and social policy challenges and rising expenses in various sectors, Bosch, a renowned industry leader, seeks to adapt by implementing drastic measures for financial efficiency in its business, resulting in job losses, but also securing some positions through negotiations with the works council.
Despite the anticipated closure of plants in Schwäbisch Gmünd and Hildesheim by 2024, Bosch managed to save jobs for hundreds of employees at the Schwäbisch Gmünd location, maintaining operations with 1,700 employees, thanks to concessions made during negotiations with the works council.
