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Bosch will cut around 13,000 extra jobs at its auto-parts business by 2030, representing about 3% of its global workforce.
The cuts, which come on top of thousands of job losses at Bosch in recent years, will mainly affect positions in Germany.
The company’s base in the Stuttgart region is set to be the hardest hit, while sites in areas such as Feuerbach and Schwieberdingen will see thousands of job cuts.
The engineering giant is seeking to claw back €2.5 billion in losses “as quickly as possible” as Europe’s car industry remains in the doldrums.
The firm said it intends to begin discussions with affected employees immediately.
Carmakers are struggling with lacklustre demand, elevated labour and energy costs, and competition from cheaper, Chinese models, as well as raised tariffs on US exports. These duties on cars and car parts are currently charged at a 15% rate, down from a previously threatened rate of 27.5%.
As pressure from the US hits margins, the transition to electric mobility is also complicating matters for carmakers, as uncertainty looms over the EU’s targets to reduce carbon emissions. Several European governments have also scaled back EV subsidies for consumers, hitting demand.
Bosch is one of several producers seeking to cut costs in the face of these headwinds. European firms including Volkswagen and Volvo have announced job cuts this year, as well as non-European firms such as Nissan and Stellantis.
As well as reducing its workforce, Bosch said it plans to decrease investments in manufacturing facilities in response to slowing demand.
Bosch’s announcement comes as blow to German Chancellor Friedrich Merz, who is seeking to attract investment and revitalise the country’s flailing industrial sector with promises of greater state spending.
Germany this year approved a constitutional amendment to its ‘debt brake’ rule, meaning defence spending above 1% of GDP will not be subject to borrowing limits. The government has also created a €500bn extrabudgetary fund for additional infrastructure spending, set to provide Germany with an economic boost.
German GDP is set to grow by 0.2% this year following two years of contraction, although experts warn the economy is still on shaky ground.