Thousands of jobs at BSH
Bosch is planning the next big job cuts
February 23, 2024, 8:29 p.m
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Bosch has made several red flags in recent weeks. More than 3,500 jobs will be lost in automotive supply and power tools. Now the next division follows – around 450 jobs are affected in this country.
The technology group Bosch wants to cut jobs again – this time at the household appliance division BSH. “Based on the current business volume, BSH plans to cut around 3,500 jobs in the indirect sector globally by the end of 2027, including 1,000 this year,” a company spokeswoman said. In this country, 450 jobs will be affected by the plans this year. According to the spokeswoman, the indirect area includes, among other things, administration. Production is therefore not initially affected.
The adjustments should be implemented in a socially acceptable manner. The Bosch household appliances division, which includes brands such as Bosch, Siemens, Gaggenau and Neff, reportedly wants to avoid operational-related layoffs. It was said that a specially set up transformation unit should qualify affected employees in Germany for the internal and external job market. According to a spokeswoman, around 60,000 people worked at BSH worldwide, including around 17,000 in Germany.
According to the company, complexity and costs must be significantly reduced in order to ensure competitiveness and to finance the necessary investments. This is particularly true in view of the rapidly changing market situation and the persistently difficult and declining economic situation. It is absolutely necessary to adapt the organization to the new strategy and the growth markets.
Inflation and economic weakness
Recently, Bosch’s plans to cut jobs in Germany were announced several times. Up to now, up to 3,760 jobs have been up for grabs in the supplier sector and the Power Tools division. Together with BSH Hausgeräte, the latter forms the consumer goods pillar of the group – and thus the second largest business area. Power Tools produces, among other things, power tools, garden tools and measurement technology.
However, inflation and economic weakness have recently caused problems for both areas. According to preliminary business figures, in 2023 the division generated more than a fifth of Bosch’s sales of 91.6 billion euros. However, this division was the only one that recorded a significant decline in sales last year. Bosch does not expect demand to pick up again until 2025.
At the end of 2023, Bosch had around 427,600 employees worldwide, including 133,800 in Germany. When the preliminary figures were presented in February, CEO Stefan Hartung announced that the group would probably have to make do with fewer employees in the future. “Ultimately, this is about the difficult balance between economic and social responsibility,” he said. The market’s momentum has diminished. Now you have to react to the weaker order situation in order to remain competitive.