Chinese competitors challenge the German giant! They will lay off thousands of employees.

Chinese competitors challenge the German giant! They will lay off thousands of employees.

23.07.2025 11:32

The electric transformation in the automotive industry has also affected Bosch's Reutlingen plant. Due to increasing competition and declining demand, the facility will shift its focus from steering systems to semiconductor production.

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The effects of the transition to electric vehicles and increasing global competition are deeply shaking the German automotive industry. Bosch announced that it will lay off 1,100 people at its Reutlingen plant. The company will focus the facility on semiconductor production. The company stated that it will lay off approximately 1,100 employees by 2029.

"CRUCIAL FOR THE FUTURE OF THE FACTORY"

About 10,000 people work at Bosch's Reutlingen facility. The company announced that the production of electronic control units and steering systems is no longer competitive, and it will shift the factory's focus to semiconductor production. Dirk Kress, vice president responsible for Bosch's semiconductor operations, said, "The European control unit market is quite price-focused, and the competition from new entrants is very fierce. This transformation is not easy, but it is essential to secure the future of the factory."

According to Reuters, the company's decision is driven by the deteriorating automotive market, high production costs, and increasing external competitive pressure on manufacturers in Europe. Additionally, the trade wars between the U.S. and global trading partners are deepening uncertainties in the industry.

THE AUTOMOTIVE SECTOR IN GERMANY IS SHRINKING

This move by Bosch is part of a broader contraction in the German automotive sector. Other major automotive suppliers, such as Continental and Schaeffler, also announced similar workforce reduction plans last year. Porsche was also in the news last week for issuing serious warnings to its employees due to a decline in the Chinese market.

Last November, Bosch announced that it would lay off 5,500 people globally and restructure its operations to adapt to market conditions. The recent layoff of 1,100 people in Reutlingen raises concerns about job security in the automotive sector, one of Germany's most critical industrial sectors. The company had laid off more than 13,000 people worldwide in the past two years.

CHINESE ELECTRIC VEHICLE MANUFACTURERS HAVE CHALLENGED GERMANY

Although Bosch stated that it is determined to maintain its manufacturing presence in Germany, Tuesday's announcement clearly highlighted how the transition to electric mobility, combined with cost pressures from rising Chinese competitors, is challenging established manufacturers.

The company has not yet confirmed the timeline for the layoffs or whether options for reskilling affected employees or reassignment to different departments will be offered.



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