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(Bosch Group)

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Robert Bosch GmbH will cut about 13,000 additional jobs at its auto parts business as rising competition and a sluggish European car market push the manufacturer into deeper restructuring.

The reductions, about 3% of the company’s global workforce, will be made by 2030 and mainly impact locations in Germany, Bosch said Sept. 25. The parts maker has eliminated thousands of positions in recent years but is still seeing an annual shortfall of about 2.5 billion euros ($2.93 billion) at the mobility division.

Bosch’s move highlights the mounting strain on Germany’s industrial base as automakers and suppliers grapple with tariff costs, muted demand and intensifying competition from Chinese manufacturers. Demographic pressures in Europe’s biggest economy are pushing up labor expenses, while energy prices remain elevated following Russia’s invasion of Ukraine.

Several parts makers face idle capacity and are under pressure from carmakers to lower prices even as their own input costs climb. Volkswagen AG and Porsche AG are reducing staff and output to offset weak sales in China and the cost of U.S. tariffs. At the same time, Chinese competitors are winning share with cheaper batteries, motors and electronic components, eroding margins for traditional manufacturers. Bosch’s peers Continental AG and ZF Friedrichshafen AG are also cutting costs.

“Geopolitical developments and trade barriers such as tariffs are creating significant uncertainties that all companies must contend with,” said Markus Heyn, the Bosch board member overseeing the mobility business. “We expect competition to intensify further, so our goal is to seize growth opportunities wherever possible and position our Mobility sites worldwide for the future.”

Privately held Bosch is one of the biggest names in autos. Manufacturing everything from spark plugs to automated driving software, the company has invested heavily in new technologies including hydrogen and electric vehicles. It employed 417,900 people at the end of last year.

The cuts are a setback for German Chancellor Friedrich Merz, whose party has slipped behind the far-right Alternative for Germany in polls. Merz has tried to bolster confidence with spending packages and his “Made for Germany” investment initiative — which Bosch backed — but manufacturers in the country are still shedding thousands of positions in industries such as steel, chemicals and cars.

At Bosch, the deepest cuts will hit the company’s historic base in the Stuttgart region. In Feuerbach, where Bosch makes diesel components and has invested in hydrogen technology, about 3,500 jobs will go by 2030 as falling demand leaves plants underused. The Schwieberdingen site will shed some 1,750 positions, reflecting weak orders and the slow rollout of new technologies.

In Waiblingen, Bosch plans to close a 560-person plant that produces connectors for the auto industry by 2028 after years of shrinking volumes. In Bühl, a hub for small electric drives, the company expects to cut about 1,550 jobs, while roughly 1,250 positions will disappear in Homburg, where diesel truck parts still dominate output.

The supplier said it has informed workers and their representatives and will seek socially responsible solutions where possible. Still, management stressed that swift action is needed to restore competitiveness.

“Germany remains central for Bosch,” labor director Stefan Grosch said. “But we have to become more efficient to hold our ground in global competition.”