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Business in the automotive industry is weakening – including at supplier Bosch. Plans for job cuts have now been announced again. This time at a software subsidiary.
In view of the crisis in the automotive industry, the Bosch subsidiary Etas, which specializes in vehicle software, is also planning to cut jobs. Over the next three years, up to 400 jobs are to be cut worldwide, according to a company spokesperson. The exact number would depend on discussions with employee representatives. It was initially unclear how many jobs would be affected in Germany.
The savings plans therefore affect around one in eight of the approximately 3,100 employees worldwide. According to the company, more than half of these, around 1,650, were working in Germany at the beginning of July. In Germany, Etas has sites in Stuttgart-Feuerbach, Abstatt, Hildesheim, Bochum, Berlin and Munich. The “Heilbronner Stimme” had previously reported on the plans.
Reason for downsizing plans: crisis in the automotive industry
The spokesperson cited the situation in the industry as the reason for this. Among other things, intelligent driver assistance systems are not in as much demand as expected. Many such projects are currently on hold. The job cuts are to be made as socially responsible as possible, said the spokesperson. An agreement concluded in mid-2023, which rules out redundancies until the end of 2027, also applies to the Bosch subsidiary.
Among other things, Etas develops basic software for various car manufacturers and other suppliers. However, its portfolio also includes cybersecurity solutions for vehicles. The wholly-owned Bosch subsidiary based in Stuttgart generated turnover of 499 million euros in 2023.
The technology group has been announcing job cuts for over a year now. By the end of 2032, more than 12,000 jobs could be lost at Bosch worldwide. In Germany, a good 7,000 jobs are affected. The majority of these are in the supplier division. However, jobs are also to be cut in other areas such as the tools division. Protests against the redundancy plans have recently taken place at several Bosch locations in Germany.
Industry in crisis
The automotive industry is in crisis in the face of the weak economy and is suffering from meagre demand – especially for e-cars. At Volkswagen, wage cuts, plant closures and job cuts are on the cards. IG Metall is mobilizing against this with warning strikes. At Ford in Germany, 2,900 jobs are to be cut by 2027. Suppliers ZF, Continental and Schaeffler also want to cut thousands of jobs.
dpa
