Bosch to cut another 750 jobs in Germany amid tough Asian competition

German automotive supplier Bosch plans to cut an additional 750 jobs in Germany by the end of 2029, the ailing company said on Thursday, citing difficult economic conditions and structural changes in the car sector.

"Global vehicle production is stagnating, while demand is falling in Europe. At the same time, competitive pressure is mounting in terms of costs, speed and productivity, particularly from Asian suppliers," Bosch said.

The cuts will affect the mobility sector at the company's Abstatt plant, north of Stuttgart.

The mobility sector at Bosch, which also makes power tools, appliances, industrial technology and energy and building technology, has been particularly hard hit by the company's cost-cutting drive, with over 23,000 jobs to be cut in Germany in the future, according to a spokeswoman.

A total of around 5,300 people currently work at the Abstatt site, which is home to the vehicle motion business unit that develops and markets braking systems, vehicle motion software, occupant protection systems and vehicle sensor technology.

The cross-domain computing solutions business unit, which develops vehicle electronics, sensors and software from a single source, and the subsidiary Bosch Engineering GmbH are not affected by the job cuts.

In the wake of the transformation in the automotive market, the portfolio in the braking sector has also been changing significantly for several years, with demand for cost-effective solutions rising sharply, Bosch said.

"Modern integrated braking systems are subject to significantly fiercer price competition, and new Asian suppliers are increasingly entering the European market with more cost-effective solutions."

Innovations such as electronic braking systems, in which the direct mechanical or hydraulic link between the brake pedal and the brakes on the wheels is eliminated, are increasingly being introduced first with Chinese customers and developed in collaboration with the local Bosch site, it said. "This means that less capacity is required in Abstatt."

Bosch has been struggling with a weak global economy and the uncertain geopolitical situation.

In the first six months of the year, the company posted a 3.6% increase in revenue to €46.4 billion ($52 billion) compared to the same period last year. However, the growth was primarily driven by acquisitions.

Over the course of last year, Bosch acquired the heating, ventilation and air-conditioning businesses of Johnson Controls and Hitachi, causing the company's profitability to decline. Adjusted earnings before interest and tax (EBIT) fell from €2.3 billion to €2.2 billion.