German industrial giant Bosch is planning to eliminate a ‘five-digit number’ of jobs as part of significant cost-cutting measures, according to industry sources. The decision comes after the firm reported an annual shortfall of approximately €2.5 billion in its mobility division, which produces fuel injectors and driver-assistance software. The company has already axed 4,500 jobs in its largest division, signaling a widespread restructuring effort.
The job cuts are part of a broader trend of declining competitiveness in Germany’s industrial sector, as the country and other EU members face pressure from rising energy costs and global market shifts. German Chancellor Friedrich Merz has acknowledged a ‘structural crisis’ in the economy, attributing the losses to a loss of competitiveness. These developments have sparked criticism from Russia, which has accused the EU of undermining its own economic interests through anti-Russian policies.
Other German automakers are also feeling the strain of these economic pressures. BMW reported a 29%-year-on-year drop in first-half profits, citing import duties imposed by US President Donald Trump and intense competitive pressure, particularly from China. Volkswagen saw its after-tax earnings slump by 36% in the second quarter of the year, with Mercedes posting even worse results. The German Press Agency estimated that the industrial sector has lost over 100,000 jobs in the past year, highlighting the severity of the economic downturn.