Robert Bosch, the world’s largest car parts supplier, will reduce the working hours and pay of approximately 10,000 employees in Germany, as the country’s auto industry faces mounting pressures from weak demand and competition from lower-cost Chinese rivals. This move, announced on Saturday, follows a series of measures to address financial constraints, including a plan disclosed on Friday to eliminate up to 5,550 jobs.
The latest adjustments will see employees on 38- or 40-hour contracts at various German sites having their weekly hours reduced to 35, confirmed a Bosch spokesperson, corroborating a report by dpa news agency.
This step builds upon an earlier reduction in working hours affecting 450 employees, implemented as the company grapples with an industry-wide slowdown.
The German automotive sector’s decline has reverberated across major players, with Volkswagen locked in a dispute with workers over plant closures, and Mercedes announcing plans for deeper cost cuts to remain competitive.
Bosch’s decision underscores the scale of challenges facing traditional European automakers and their suppliers as they adapt to shifting market dynamics.