Bosch plans to cut more than 7,000 jobs at its German plants amid a lowered growth forecast for 2024.
“Bosch will not achieve its economic targets in 2024,” said Stefan Hartung, CEO of Bosch, as quoted by a Rzeczpospolita report. “At this point, I cannot rule out that we will have to further adjust our staffing,” Hartung added.
The company reported revenue of nearly 92 billion euros in 2023 and expects a maximum return on sales of four per cent this year, down from the five per cent it achieved in 2023. “Our return on sales will be a maximum of four per cent,” Hartung announced. The CEO has a target of seven per cent by 2026.
As a leading automotive supplier, Bosch faces mounting challenges from an industry-wide crisis compounded by a slowdown in the economy and uncertainty about EV transition, all of which are adding to the company’s woes.
The company is planning to cut costs due to weak demand, the report said, citing Bosch’s HR director, Stefan Grosch, in an interview with the Stuttgarter Zeitung.
However, it is expected that Bosch will cut operational jobs till 2027. It plans to cut jobs through severance programmes. Earlier, Bosch had announced job cuts across the globe, including Germany, specifically in the automotive supply division, the tools division and the BSH household appliances subsidiary, the report said.
Bosch to acquire Johnson Controls
Meanwhile, in July, Bosch announced plans for its largest acquisition ever. The company is focusing on the heat pump and air-conditioning division by acquiring Johnson Controls, an Irish company. Bosch acquired it for nearly 7.4 billion euros, the report said.
“We can finance these transactions entirely from our own resources,” Hartung said. Bosch plans to integrate the business of Jonson Controls into the Home Comfort Group. The acquisition is expected to finish in 12 months.
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