German automotive components manufacturer Robert Bosch is planning to reduce working hours and salaries for 10,000 employees due to a slump in automotive parts demand, reported Bloomberg.
The move comes amid broader job cuts by the company to address a downturn in demand for automotive parts.
Starting in March 2025, the affected staff at the company’s headquarters in Gerlingen, Germany, will see their workweek shortened from 38 or 40 hours to 35 hours.
This will result in an approximate 12.5% decrease in pay, reported the news agency citing a spokeswoman.
The changes, which were initially reported by Deutsche Presse-Agentur, will also be implemented at Bosch facilities in Schwaebisch-Gmuend and Schwieberdingen.
Bosch is in the process of eliminating 5,500 jobs globally as it struggles in the wake of a significant drop in the demand for new vehicles.
This downturn is having widespread impacts on the industry, compelling Bosch to curtail production in areas such as automated driving and car steering products.
This aligns with actions taken by other German automotive companies, such as Continental and ZF Friedrichshafen, which are also implementing measures amid the crisis.
Bosch manufactures a diverse range of products, from spark plugs to automated driving software. It has made investments in emerging technologies.
In October 2024, Bosch Mobility Solutions opened two new joint venture plants in China to increase production capacity for new energy vehicle (NEV) components in the country.
One of its joint ventures, United Automotive Electronic Systems Company (UAES), opened its new Taicang phase III plant near Shanghai. It is scheduled to begin commercial production of Bosch’s eAxle and electric motors in 2025.
Bosch also inaugurated a new R&D and manufacturing facility in the Suzhou Industrial Park, Jiangsu province.
The facility focuses on developing and producing core components for new energy and automated vehicles.
“Bosch plans reduction in working hours and salaries” was originally created and published by Just Auto, a GlobalData owned brand.
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