Bosch Slashes Work Hours to Navigate Industry Storms and Preserve Jobs
1min read Robert Bosch, the world's largest automotive parts supplier, has announced a reduction in working hours and corresponding wages for approximately 10,000 employees in Germany. This decision forms part of a broader workforce adjustment plan revealed recently, involving potential layoffs and a strategic shift to manage costs amidst weakening demand and industry competition.
As part of this cost-cutting measure, employees at various German plants who are currently on 38 to 40-hour contracts will see their working hours reduced to 35 hours per week. Confirming reports from the German Press Agency, Bosch's spokesperson indicated that the revised work schedule would accompany a reduction in wages, impacting chiefly the facilities in Gerlingen and Stuttgart.
The changes are set to impact not just the main workforce but also Bosch's subsidiary, Bosch Engineering. Since October, approximately 2,300 employees at this subsidiary have been transitioned from a 40-hour workweek to 37 hours, with additional reductions planned, bringing work hours down to 36 by 2024/2025. The Abbsubstadt facility near Heilbronn is highlighted as among the most affected by these changes.
The measure underscores Bosch’s attempt to avoid more drastic actions like outright job cuts. Bosch CEO Stefan Hartung recently defended the company's strategy at a media event, emphasising that reducing work hours for those on full-time contracts is a fair approach, preferable to layoffs. This move coincides with securing employment contracts agreed with the German automotive sector's domestic base.
Bosch’s actions echo wider industry challenges, as Germany’s automotive industry grapples with declining demand and heightened competition. The move is seen as a proactive step to navigate the turbulent market conditions, aiming to safeguard long-term employment while addressing immediate economic pressures.