Agreement with works council - Bosch cuts back on some jobs in the Power Tools division
Bosch Technology Company will reduce fewer jobs than originally planned at the headquarters of its Power Tools division. The number of positions to be eliminated by the end of 2026 has been reduced from 560 to 480, according to the company and the works council.
A corresponding agreement has been signed. This agreement, according to reports, also includes an exclusion of job terminations due to operational reasons for employees in central, development, and administrative areas until the end of 2028. The production at the headquarters is not affected by the plans. The agreement was previously reported by "Stuttgarter Zeitung" and "Stuttgarter Nachrichten".
The plans affect approximately one quarter of the approximately 2,000 employees at the headquarters in Leinfelden-Echterdingen, Germany. Nationwide, around 3,100 people work for Power Tools. Cost savings are to be achieved through the job cuts. Bosch cited the maintenance of competitiveness as the main reason.
Affected employees will be internally placed.
The reduction is to be implemented with socially acceptable measures. The goal is to place employees in open positions within the Bosch Group. In addition to a voluntary severance program and retirement regulations, there will also be consulting offers for professional reorientation outside the corporation.
Thomas Donato, chairman of the division board, stated: "After intensive and demanding negotiations, we have now reached an agreement that is economically viable and socially acceptable." We are in a challenging economic environment with high price and competition pressure. An agreement was therefore important to secure the competitiveness of Power Tools. In the negotiations, there was a compromise for the employees and a clear commitment to the location.
Bosch also faces purchasing restrictions for Power Tools
Power Tools produces, among other things, electric power tools, garden equipment, measuring technology, and accessories. Together with household appliances, the division forms the Consumer Goods business sector, which accounted for more than a fifth of the entire Bosch turnover of around 91.6 billion Euro in 2023. Recently, the purchasing restrictions of many people had caused the earnings of the sector to decline. Bosch had previously expected a recovery no earlier than 2025.
In the past few months, plans from Bosch have become known to cut jobs worldwide. Overall, several thousand jobs are affected. German sites - among them in the automotive logistics sector and also at the household appliance subsidiary BSH - have been particularly affected. According to the works council, around 25,000 employees had protested against the plans nationwide in mid-March. Negotiations had also led to fewer job cuts in the area of drive systems.
- Bosch, a prominent Technology conglomerate, announced reduced job cuts at their Power Tools division Headquarter in Leinfelden-Echterdingen, Germany.
- The Works Council and the company agreed to exclude job terminations due to operational reasons for employees in central, development, and administrative areas until the end of 2028.
- The Power Tools division, which includes the production of consumer goods like electric power tools, garden equipment, measuring technology, and accessories, is located at Bosch's Headquarter in Baden-Württemberg.
- The Stuttgarter Zeitung and Stuttgarter Nachrichten had previously reported about the agreement between Bosch and the Works Council regarding the reduced job cuts.
- The Technology sector within Bosch, which includes Power Tools and household appliances, accounted for over 20% of their total turnover of approximately 91.6 billion Euro in 2023.
