Clear-cutting at the Abstatt site: Bosch is cutting even more jobs due to competition from China

The Bosch Group repeatedly announces job cuts. Now it is affecting a location in Baden-Württemberg that is part of the long-suffering mobility division. The competition in braking systems is particularly a problem there.

The ailing technology group Bosch wants to cut a further 750 jobs in the mobility division at its Abstatt site (Heilbronn district). The job cuts should be completed by the end of 2029 and should be carried out in as socially responsible a manner as possible.

Difficult economic conditions and the profound structural change in the automotive industry were cited as reasons for further workforce reductions in Abstatt. "Global vehicle production is stagnating, and demand is even declining in Europe. At the same time, competitive pressure in terms of costs, speed and productivity is growing, especially from Asian suppliers."

Bosch's mobility division is particularly affected by the job cuts in Germany within the technology group. According to a spokeswoman, more than 23,000 jobs will be lost here over different periods of time.

Cheaper offers from Asian providers

As part of the transformation in the car market, the portfolio in the brake sector has also changed significantly in recent years, and the demand for cost-efficient solutions is increasing sharply, the company said with regard to Abstatt. "Modern integrated braking systems are subject to significantly greater price competition and new Asian providers are increasingly entering the European market with more cost-effective solutions."

Innovations such as electronic braking systems, in which the direct mechanical or hydraulic connection between the brake pedal and the brakes on the wheels is eliminated (brake-by-wire systems), are increasingly being introduced first with Chinese customers and developed together with the local Bosch location. “This means that less capacity is needed in Abstatt.”

In total, around 5,300 people work at the Abstatt location. The Vehicle Motion division develops and sells braking systems, vehicle movement software, occupant protection systems and vehicle sensors. The Cross-Domain Computing Solutions division, which develops vehicle electronics, sensors and software from a single source, and the subsidiary Bosch Engineering GmbH are not affected by the workforce reductions.

Growth through acquisitions

The challenges that concern Bosch on the big stage are not new: the global economy is weakening and the geopolitical situation is still uncertain. The technology group and auto supplier did not make any major leaps in the first half of the year. In the first six months of 2026, sales rose by 3.6 percent to 46.4 billion euros compared to the same period last year.

However, the growth came primarily through acquisitions. Bosch acquired the heating, ventilation and air conditioning businesses of Johnson Controls and Hitachi over the past year. There was a decline in profitability. Adjusted earnings before interest and taxes (EBIT) - Bosch speaks of operating EBIT - fell from 2.3 billion euros to 2.2 billion.