Bosch Slashes 5,500 Jobs as Shift to Software-Defined Vehicles Falters
Robert Bosch GmbH, the world’s largest automotive supplier, has announced plans to eliminate approximately 5,550 jobs worldwide, signaling that the industry-wide crisis has now fully permeated the Tier 1 supply chain. The Stuttgart-based technology giant confirmed that the reduction will primarily impact its Cross-Domain Computing Solutions division, the unit responsible for advanced driver-assistance systems (ADAS) and automated driving software. The restructuring, which includes the loss of 3,800 positions in Germany alone, is scheduled to be completed by the end of 2027 as the company attempts to align its workforce with a stagnating global market.
The decision highlights a critical recalibration of the industry’s timeline for autonomous and software-defined vehicles (SDVs). Bosch had aggressively hired engineering talent to support the expected boom in Level 3 and Level 4 autonomous driving technologies, but the adoption rate by automakers has been significantly slower than projected. In a statement addressing the cuts, a company spokesperson cited “weak demand for intelligent driver assistance systems” and a global automotive production volume that remains stuck at approximately 93 million units—well below the growth trajectory forecasted just a few years ago.
Stefan Hartung, CEO of Bosch, indicated that the company will miss its financial targets for 2024, with the return on sales margin hovering around 4 percent rather than the strategic goal of 7 percent. Hartung emphasized that the “profound transformation” of the automotive sector is no longer just about electrification, but also about the economic viability of complex software architectures that consumers are hesitant to pay for. The layoffs will affect development, sales, and administrative roles, marking a retreat from the expansionist strategy the supplier adopted to compete with tech firms like Google and Nvidia.
This announcement follows a cascade of austerity measures across the German industrial landscape, mirroring recent downsizing confirmation from Volkswagen and Ford of Europe. Bosch is currently in negotiations with employee representatives to manage the reduction through voluntary measures and early partial retirement schemes, aiming to avoid forced redundancies where possible. However, the scale of the cuts at the very division intended to drive future growth suggests that the supplier expects the “software-first” era of the automobile to face a prolonged period of consolidation and lowered expectations.
