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Bosch CEO Stefan Hartung says the company “will not achieve its economic goals in 2024. At the moment, I cannot rule out that we will have to further adjust our staffing resources”.
Bosch has repeatedly announced plans to reduce jobs worldwide in recent months.
German auto components major Bosch has decided to lay off 7,000 employees amid weak business. Its CEO Stefan Hartung also said further job cuts cannot be ruled out as the company has not achieved its economic goals in 2024.
“In recent months, Bosch has repeatedly announced plans to reduce jobs worldwide. The latest move affects over 7,000 jobs in Germany, primarily in the automotive supply sector, but also in the tools division and the BSH subsidiary that handles household appliances,” said the Bosch CEO, according to Rzeczpospolita.
Bosch had recorded a revenue of $98 billion in 2023 and achieved a return on sales of 5 per cent. However, this year, the company is expected to achieve a lower 4 per cent return on sales, with a target of 7 per cent by 2026.
“Bosch will not achieve its economic goals in 2024. At the moment, I cannot rule out that we will have to further adjust our staffing resources,” Hartung said.
Bosch Plans to Acquire Johnson Controls
Despite layoffs, the company is planning to buy Irish company Johnson Controls for around $8 billion in its largest acquisition ever. It will help Bosch strengthen its position in heat pump and air conditioning industry.
European Auto Gloom
The layoffs add to the gathering gloom in the auto industry that underpins Europe’s largest economy.
Profit at Volkswagen plunged to a three-year low in the third quarter, Europe’s largest carmaker said on Wednesday, and workers are threatening to strike over VW’s plans to lower costs by closing plants in Germany and cutting pay.
