Bosch lays off 7,000 employees, CEO Stefan Hartung says more layoffs cannot be ruled out

Latest update:November 04, 2024 06:42 PM IST

Bosch CEO Stefan Hartung said the company “will not achieve its economic targets in 2024. At this point, I cannot rule out that we will have to further adjust our human resources.”

In recent months, Bosch has repeatedly announced plans to cut jobs around the world.

German auto components manufacturer Bosch has decided to lay off 7,000 employees due to weak business. Its CEO Stefan Hartung also said further job cuts could not be ruled out as the company had not met its 2024 economic targets.

“In recent months, Bosch has repeatedly announced plans to cut jobs around the world. The latest move will affect more than 7,000 jobs in Germany, primarily in the automotive supply sector, as well as in the tools division and the BSH subsidiary, which deals with household appliances,” Bosch’s CEO said, Rzeczpospolita reported.

In 2023, Bosch had revenues of $98 billion and a return on sales of 5 percent. However, the company is expected to achieve a return on sales of 4% this year and plans to reach 7% by 2026.

“Bosch will not reach its economic targets in 2024. At this point, I cannot rule out that we will have to further adjust our human resources,” Hartung said.

Bosch plans to acquire Johnson Controls

Despite the layoffs, the company plans to buy Ireland’s Johnson Controls for about $8 billion, its largest acquisition ever. This will help Bosch strengthen its position in the heat pump and air conditioning industry.

European autodark

The layoffs add to the growing gloom in the auto industry, which underpins Europe’s largest economy.

Volkswagen’s profits fell to a three-year low in the third quarter, Europe’s largest automaker said on Wednesday, while workers are threatening to strike over VW’s plans to cut costs by closing plants in Germany and cutting wages.