Bosch Power Tools plans to cut hundreds of jobs by end of 2026
German engineering firm and auto supplier Bosch plans to cut hundreds of jobs in its Bosch Power Tools division.
"The company expects a need to cut up to 560 jobs ... by the end of 2026," a Bosch spokeswoman told dpa on Wednesday.
The plans affect more than a quarter of the approximately 2,000 employees at the Bosch plant in Leinfelden-Echterdingen, in south-western Germany. Around 3,100 people work in the power tools division in Germany.
Bosch cited changing market and customer requirements as one reason behind the planned job cuts.
A boom during the coronavirus pandemic had largely satisfied demand. Furthermore, high inflation and the generally tense economic situation have had a lasting impact on the consumer climate.
Bosch also said the company 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 under way, such as saving on material costs, also reduce its personnel costs in the central, development and administrative areas," it said.
It noted that some activities are to be relocated at more cost-effective sites abroad. The head of Bosh Power Tools, Thomas Donato, said the step is necessary to secure and expand the position in a highly competitive global market.
Power tools, garden tools, measurement technology and accessories are among the goods that Bosch Power Tools produces. Power Tools and Household Appliances together form the Consumer Goods division, which in 2022 accounted for around 25% of total Bosch sales of just over €88 billion.
Bosch's automotive supply division is considering another round of major job cuts, this time in the company's vehicle electronics and software divisions, officials said earlier this month.
A Bosch spokeswoman told dpa in mid-January that the potential reduction in personnel currently stands at around 1,200 jobs worldwide by the end of 2026.
