Bosch facing workforce reductions: What does this mean for Schwäbisch Gmünd?

Bosch facing workforce reductions: What does this mean for Schwäbisch Gmünd?

On May 22, 2025, employees at Bosch in Schwäbisch Gmünd and nationwide will face significant challenges. Bundestag member Ricarda Lang from the Green Party is calling on the company to take responsibility towards its employees and their families. The company, which is considered one of the largest employers in Schwäbisch Gmünd, is currently confronted with massive restructuring, the effects of which are not only of a technical nature.

Lang criticizes the years of neglect of investments in future technologies, especially in the automotive industry, and emphasizes that Bosch, as a major supplier, is feeling the consequences of these failures. The new government's plans for cheaper industrial electricity prices could also fail and further aggravate the situation. In this context, the company has announced that it will undertake massive staff cuts, causing unrest in the region. Lang points out that dealing with the works council and the employees is perceived as too harsh and uncompromising.

Growing concerns about jobs

Bosch, the world's largest supplier to the automotive industry, is planning significant staff cuts that could affect up to 1,500 jobs in Germany, particularly in the drive division. There are also around 1,200 positions available worldwide in the area of ​​electronics and software for automated driving, including up to 950 in Germany. There are also announced job cuts in the control unit division, which could affect 500 jobs. In addition, hundreds of employees in the power tools and household appliances sector no longer have a secure future.

The union and the works council are alarmed and have organized protests. A recent day of protests drew thousands of supporters to Bosch headquarters to make the workforce's concerns clear to management. Automotive expert Stefan Bratzel predicts that the transformation to electromobility could cost around 20% of jobs, which further fuels the discussion about the adjustments at Bosch.

Transformation and global strategies

Managing director Stefan Grosch emphasized the need to adapt to changing conditions. The renovation and gutting of the main site in Stuttgart is part of this transformation, which includes the transition from combustion engines to electric mobility. However, Bosch faces not only internal but also external challenges. A weak global economy, inflation and negative exchange rates place additional strain on the company's strategy.

Bosch has already concluded a “future agreement” in the past that excludes redundancies for operational reasons until the end of 2027. Nevertheless, company management is asked not to forget the legacy of founder Robert Bosch and the responsibility for its employees. Lang appeals to management to seek dialogue with the workforce in order to shape the future of the company together. Bosch has the potential to remain the largest employer in Schwäbisch Gmünd if all parties work together.

To ensure competitiveness, Bosch plans to increase investments in international markets. Last year, almost a billion euros were invested in a development center in China, and a new location for electromobility is being built in the Czech Republic. The conversion of the corporate headquarters is scheduled to be completed by 2025, but the substantive transformation will take more time.

The events surrounding Bosch highlight the complex challenges that large companies face in times of change. The coming months will be crucial for how the situation in Schwäbisch Gmünd and beyond develops.