Bosch to cut 5,500 jobs as auto industry slump deepens

Bosch’s move comes amid growing pressures in the automotive sector

Parts supplier Robert Bosch GmbH will cut 5,500 jobs globally, mainly in Germany, marking the latest blow to the country’s embattled automotive sector.

Bosch, the world’s biggest automotive supplier by revenue, will cut positions related to automated driving and car steering products in Germany, according to a statement from the IG Metall union. A Bosch spokeswoman confirmed the company would eliminate 5,500 positions globally, including 3,800 posts in Germany.

“The automotive industry is suffering from significant overcapacity,” Bosch said in a statement. “Competition and price pressure have continued to intensify.”

Bosch’s move comes amid growing pressures in the automotive sector, as the shift to electric vehicles stumbles and a cost-of-living squeeze dents customer budgets. Ford Motor Co. on Wednesday announced plans to cut another 4,000 jobs in Europe, about 14% of its local workforce. Volkswagen AG is considering measures including unprecedented plant closures in Germany.