Robert Bosch announced on Friday plans to cut up to 5,550 jobs, highlighting ongoing challenges in Germany's struggling automotive sector, which is facing stiff competition from lower-cost Chinese rivals and declining demand.

The world's largest car parts supplier plans to eliminate 3,500 positions in its cross-domain computer solutions division by the end of 2027, with half of these cuts impacting German locations. The move comes amid weak demand for intelligent driver assistance systems and automated driving solutions.

At its Hildesheim plant in Germany, Bosch aims to reduce around 750 jobs by 2032, with 600 of those cuts expected by the end of 2026. Additionally, the company announced plans to shed up to 1,300 roles at its steering division in Schwaebisch Gmuend, near Stuttgart, between 2027 and 2030.

The downturn in Germany's automotive industry has also affected major players like Volkswagen, which faces disputes with workers over plant closures, and Mercedes-Benz, which has pledged stricter cost-cutting measures following a sharp drop in earnings.

Bosch’s works council and the IG Metall union condemned the planned layoffs, with Frank Sell, deputy head of the works council, stating, "We will now organize our resistance to these plans at all levels." – REUTERS