Bosch fully caught by automotive crisis: Stagnant e-mobility slows down

The technology company Bosch is cutting its forecast due to the economic downturn and does not rule out additional job cuts. "Bosch will not achieve its economic goals in 2024," CEO Stefan Hartung told "Tagesspiegel" and "Tagesspiegel Background". It is questionable whether the announced reduction of more than 7,000 jobs in Germany will remain as planned. "Currently, I cannot rule out that we will need to further adjust our staffing levels."

Overall, revenue in 2024 will be "slightly below the previous year." Bosch generated almost 92 billion euros in 2023 and had recently expected growth for the current year. "Our profit margin will be a maximum of four percent," announced Hartung. It was five percent in the previous year. The goal of seven percent in 2026 remains "firmly in sight," the Bosch CEO was further quoted.

Crisis among automakers becomes noticeable

As an auto supplier, the foundation company is severely affected by the crisis in the automotive industry, with weak economic conditions and the slow start of electromobility coming together. Due to the lack of orders, Bosch's personnel director Stefan Grosch had announced intensified cost-saving measures some time ago in talks with "Stuttgarter Zeitung" and "Stuttgarter Nachrichten". Bosch has excluded forced redundancies at its German mobility division sites until 2027. However, positions can still be cut, for example through severance programs. 

Hartung called on the federal government to end its coalition disputes and quickly support the industry. "The problems are obvious," said the Bosch CEO. "We now need to move from talking to action and implement concrete measures before the federal election to strengthen the economy in the short and long term. The "industrial pact" announced by Chancellor Olaf Scholz (SPD) can only succeed "if we set aside party-political differences and focus on the matter," Hartung further stated.