German Bosch, one of the automotive industry's largest subcontractors, is now under such financial pressure that the board of directors is announcing layoffs of 10,000 employees.
In the person of the chairman of the cooperation committee, Frank Sell, Bosch's board is now telling them that 10,000 employees are at risk of losing their jobs.
Reuters writes.
The decision comes as a result of the crisis currently affecting the German automotive industry. Falling sales figures, the transition to electric cars and increasing competition from China have created uncertainty in the industry.
Bosch, the world's largest auto parts manufacturer, employs 135,000 people in Germany. According to Sell, the number of layoffs could end up being somewhere between 8,000 and 10,000.
"German car brands are suffering from a serious cost crisis as competition intensifies and sales fall," says Sell.
Conversely, he cannot rule out that Bosch employees could follow the example of Volkswagen employees and initiate a strike. A strike that could potentially paralyze the company.
The HR manager at Bosch emphasizes that the cuts are necessary to ensure the company's competitiveness going forward.
The German giant has already made cuts this year. This has happened in Denmark, for example, where a 63-year-old spare parts company has been closed. The closure will cost 77 employees their jobs. Read more about it here .
Bosch is neither the first nor the last company in the automotive industry to announce cuts. The gearbox manufacturer is looking to find even greater savings if possible.
In any case, the company announced earlier this year that it will find staggering billions in savings. And at Volkswagen, management has no doubt that their savings plan will mean factory closures.
However, not all car brands and their subcontractors are choosing to cut back. Chinese BYD has hired 200,000 new employees in just 3 months to keep up the pace.
At the same time, both BYD and several of its competitors from China want to move all or part of their production to the EU to avoid punitive tariffs. Some car brands such as Aiways are trying to survive by moving everything but the actual production to Europe.
