NextFin news, On Monday in Stuttgart, German technology giant Bosch revealed plans to reduce its annual costs by 2.5 billion euros by the year 2030. The announcement was made by Bosch's labor director Stefan Grosch in an interview with the Stuttgarter Zeitung, as reported by SWR Aktuell.
The company intends to implement a new round of cost-saving measures worldwide to address altered market conditions and the ongoing structural transformation in the automotive sector. Bosch aims to achieve a return on investment of seven percent to remain competitive and continue investing in future technologies.
Decisions regarding the specific cost-cutting measures are expected to be finalized within this year, with consultations planned with employee representatives. Grosch indicated that significant progress on the savings plan is expected within the next two years, with the full 2.5 billion euro target reached by 2030.
Regarding the impact on employees, Grosch mentioned the possibility of extending employment guarantees for Bosch Mobility staff if the workers' side supports the savings plans. Currently, Bosch's automotive division has a ban on layoffs for operational reasons until the end of 2027.
The announcement has drawn criticism from the employee representatives. Frank Sell, chairman of the Mobility division's works council, described the approach as a "salami tactic," calling for the management to provide concrete plans promptly.
Grosch explained that the shift from diesel to electric mobility has drastically changed labor requirements, with electric vehicle production needing only about one-tenth of the workforce compared to diesel engines. This structural change necessitates the intensified cost-saving efforts.
The Bosch headquarters is located in Stuttgart, Germany, where the company also operates major production sites, including the Stuttgart-Feuerbach plant.
Source: SWR Aktuell, Stuttgarter Zeitung, Yahoo Finance (September 15-16, 2025)
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