• Bosch announces the layoff of 13,000 employees, primarily in the automotive division.
• The job cuts reflect ongoing challenges in the German car sector due to competition and demand shifts.
• These reductions aim to save approximately €2.5 billion amid a stagnated market.
• The automotive industry in Germany is facing significant pressures from international competitors.
• Workers' representatives strongly oppose the unprecedented layoffs, warning of social consequences.

German industrial giant Bosch has revealed plans to cut 13,000 jobs, mostly in its auto unit, to address struggles within the country's automotive sector. This represents approximately 10% of Bosch's workforce in Germany and about 3% of its global staff, as the company seeks to enact annual savings of €2.5 billion ($2.9 billion) in its mobility division, which supplies vehicle parts and software. The decision comes amid fierce competition from companies like Tesla and China's BYD, along with a slower than anticipated transition to electric vehicles in Europe, according to TRT Global and Le Monde.

Workers' representatives have voiced strong opposition to these cuts, describing them as "historically unprecedented". Various stakeholders within Bosch deny the necessary guarantees against future layoffs, highlighting the deep social implications of the decision. Frank Sell, head of the Bosch Mobility works council, characterized the potential loss of jobs as a breach of trust and warned of potential "social devastation" in affected regions. "Bosch is not only breaching the trust of those who have made this company big and successful," Sell said, according to BBC and Le Monde.

In addition to the layoffs, Bosch plans to reduce investments in production facilities, attributing its financial challenges to a "cost gap" exacerbated by market stagnation and rising competition. Stefan Grosch, Bosch's head of industrial relations, stated, "Demand for our products is shifting significantly to regions outside Europe," emphasizing the urgent need to adapt to shifting market dynamics, according to TRT Global and BBC.

These cuts come at a time when the German automotive industry is facing significant challenges, including slow adoption of electric vehicles and a competitive price war in key markets like China, further compounded by tariff impacts. Bosch and other leading companies within the sector have reported reductions in demand as a result of these pressures. Marco Zehe, head of electrified motion at Bosch, remarked, "Electromobility has not taken off as quickly as forecast," indicating a substantial overcapacity issue, particularly in Germany, according to Le Monde and TRT Global.