Bosch, a German automotive technology supplier, announced plans to cut up to 5,500 jobs in its automotive division over the next several years, citing weak demand for cars and slow progress in adopting new technologies.

The company explained that global car sales had stagnated, resulting in excess factory capacity and a slower-than-expected shift toward electric vehicles and software-driven systems. The job cuts, set to occur between now and 2027, will primarily affect Bosch’s advanced driver assistance, automated driving technologies, and centralized vehicle software units. Around 3,500 positions will be eliminated by 2027, with about half of those job losses taking place at Bosch’s German locations.

“Excess capacity in the automotive sector is a significant challenge,” Bosch stated. “Additionally, the market for future technologies is not growing as anticipated, with many automakers postponing or canceling projects.”

Another 750 positions will be cut at the Hildesheim plant by 2032, with 600 of those jobs gone by 2026. In Schwaebisch Gmund, approximately 1,300 jobs will be lost between 2027 and 2030.

These job reductions are still in the planning phase, and the final number of cuts will need to be agreed upon with employee representatives. Bosch emphasized that the reductions would be carried out in a socially responsible manner, and a job protection agreement ensuring no layoffs in Germany until 2027 (and in some cases until 2029) would remain in effect.

Bosch’s mobility division employs approximately 230,000 people globally, out of a total workforce of 429,000. In addition to supplying the automotive industry, Bosch also manufactures industrial and building equipment, including boilers, waste-heat recovery systems, video security systems, and power tools.