It is not only the car brands that are affected by the crisis. So are the sub-suppliers. Now Bosch wants to get rid of another 5,500 employees.
Bosch, one of the biggest players in the forest of sub-suppliers for the automotive industry, now announces that a further 5,500 employees will be laid off.
Thus, the company adds several thousand layoffs to the previously announced number of cuts.
According to the company, the new redundancies primarily affect the mobility division, of which the majority of the layoffs will affect German employees.
One of the hardest hit areas is the development of software for automated traffic lights. Here, 3,500 positions will be cut before 2027 – half of them in Germany.
Handelsblatt writes that.
READ ALSO: New Porsche 911 GT3 RS has no rear window at all
Bosch emphasizes, however, that these layoffs do not mean that the company has given up on the development of autonomy within the world of cars.
Instead, according to the company, it is about bringing the development departments together. According to a spokesperson, Bosch is moving away from parallel development and moving to a sequential approach. Previously, separate teams worked on self-grained cars at levels 3 and 4 out of 5. But from now on, they will be developed one at a time by the same people.
The reason for the cuts, says Bosch, is overcapacity. In other words, a production that the company cannot utilize for one reason or another. Furthermore, the Germans do not believe that the market is not developing as expected.
According to the company, several car manufacturers have chosen to postpone or completely abandon projects with self-driving cars, and this hurts the sub-supplier.
In a previous interview, the Bosch management has acknowledged that the economic targets for 2024 cannot be achieved. Already earlier this year, the Germans announced a plan to cut 7,000 positions globally. With the latest announcement, the total number of positions to be cut rises to 12,500.
At home, Bosch has also cut back. Specifically, 77 positions have been cut after the Germans have chosen to close the Esbjerg-based company they bought 20 years ago. Read more about it here .
