Bosch is set to cut 13,000 jobs as part of its plans to save €2.5bn (£2.06bn).
The engineering giant said the losses, in its mobility division in Germany which provides vehicle parts and software, came as a result of a stagnated market and pressure from rival companies. The market has seen increased competition from the likes of Tesla and China’s BYD.
It also blamed increased costs arising, in part, from US president Donald Trump’s tariffs.
Bosch said there was a “cost gap” of €2.5bn (£2.06bn) in its auto business and it would “reduce costs at all levels as quickly as possible”.
In addition to the job cuts, the company said it wanted to decrease investments in its production facilities and buildings as it had seen a “sharp decline in demand” for its products.
As of December 2024, the firm had a 418,000-strong workforce globally.
Bosch confirmed no jobs in the UK will be affected by its latest announcement, though it would “continually assess” its operations as they were “dependent on customer demand and developments in our markets”.
“The global vehicle market continues to see subdued development,” it said.
Stefan Grosch, member of the Bosch board of management and director of industrial relations, said: “Regrettably, we will not be able to avoid further job cuts beyond those already communicated.
“This hurts us greatly, but unfortunately there is no alternative.”
Roles in administration, sales, development and production are likely to be affected in Feuerbach, Schwieberdingen, Waiblingen, Bühl and Homburg locations.
The announcement comes at a time when the once-booming German car industry is in decline as foreign competitors bite in to country’s market share.
Trump, who put a 15% tariff on the EU’s exports to the US, has wielded tariffs against major US trade partners in a bid to reorder the global economy and trim the American trade deficit.
Although the tariff is much lower than those imposed on some countries, Bosch said the global environment and high additional costs make “it impossible to maintain its current high headcount”.
The firm said it planned to begin discussions with affected employees immediately.