German automotive parts giant Bosch announced plans to lay off 7,000 employees due to ongoing business issues.
However, despite the layoffs, Bosch is moving ahead with its biggest acquisition ever, aiming to buy Irish firm Johnson Controls for about $8 billion. CEO Stefan Hartung said more job cuts might be needed as the company failed to meet its financial targets for 2024.
In recent months, Bosch has repeatedly announced plans to reduce jobs worldwide. The latest move affects over 7,000 jobs in Germany, primarily in the automotive supply sector, but also in the tools division and the BSH subsidiary that handles household appliances.
The company reported revenue of nearly $98 billion for 2023. Hartung forecast a return on sales of 4 per cent, down from last year’s 5 per cent.
Bosch will not achieve its economic goals in 2024; at the moment, I cannot rule out that we will have to further adjust our staffing resources.
The layoffs are fuelling worries in the auto industry, a key sector of Europe’s largest economy. On Wednesday, Volkswagen reported a sharp drop in profits, which fell to a three-year low in the third quarter.
Almost all major companies across the globe from different sectors announced a significant number of layoffs this year, leaving thousands of employees out of work and with an uncertain future.
