The technology group Bosch wants to cut hundreds of jobs at the headquarters of its Power Tools division. “According to the current status, the company assumes that up to 560 jobs (...) will be required by the end of 2026,” a Bosch spokeswoman told the German Press Agency.
The plans affect more than a quarter of the approximately 2,000 employees at the site in Leinfelden-Echterdingen, Swabia. Around 3,100 people work at Power Tools nationwide.
The group cited changing market and customer requirements as one reason. The special boom during the corona pandemic largely satisfied demand. Furthermore, high inflation and the generally tense economic situation have had a lasting impact on the consumer climate. They also want to invest in expanding the portfolio of cordless power tools and expand their North American business.
"In order to ensure its competitiveness in the long term, the company must, in addition to the measures already underway, such as saving on material costs, also reduce its personnel costs in the central, development and administrative areas," it said. Individual activities should also be located at more cost-effective locations abroad. According to divisional board chairman Thomas Donato, the step is necessary to secure and expand the position in a highly competitive global market.
According to the information, the positions should be designed to be as socially acceptable as possible. The Bosch spokeswoman cited partial retirement and early retirement offers as well as severance agreements and placements at other Bosch Group locations as examples. Discussions are now starting with employee representatives regarding the plans.
Bosch Power Tools produces, among other things, power tools, garden tools, measurement technology and accessories. Together with household appliances, the division forms the Consumer Goods division, which in 2022 accounted for around 25 percent of total Bosch sales of just over 88 billion euros.
Similar plans have been announced several times in recent weeks for the significantly larger automotive supply division. Bosch currently wants to cut up to 3,200 jobs there, including in the drive division and in areas responsible for vehicle computers, control units and the corresponding software.