In a significant blow to Germany’s manufacturing sector, industrial giant Bosch has announced plans to cut approximately 8,250 jobs globally over the coming years. The decision reflects mounting challenges faced by the country’s storied industrial base, as it navigates shifting market dynamics and economic headwinds.

The job cuts will primarily affect Bosch’s Mobility business sector, a division that supplies components to automakers worldwide. The sector is grappling with sluggish demand, high operational costs, and intensifying competition in an automotive industry undergoing rapid transformation.

“The difficult economic environment and the ongoing transformation in the automotive industry are presenting us — like other companies — with major challenges. It is important for us to remain competitive under these conditions,” Bosch stated. The company emphasized the profound changes reshaping the mobility sector and the necessity to adapt for future growth.

The planned reductions represent nearly 2% of Bosch’s global workforce, which stood at over 429,000 employees at the close of 2023. While details regarding specific locations affected remain unclear, the cuts highlight the challenges faced by German manufacturers as they contend with an increasingly complex economic landscape.

Bosch’s announcement is the latest in a series of blows to Germany’s industrial sector, long regarded as the backbone of Europe’s largest economy. The nation’s manufacturers face a convergence of challenges, including competition from Chinese rivals, rising labor and energy costs, and economic fallout from geopolitical crises such as Russia’s invasion of Ukraine.

Germany’s economy contracted last year for the first time since the onset of the COVID-19 pandemic and is projected to shrink again this year, according to forecasts from the European Commission. These economic struggles are putting immense pressure on the country’s flagship manufacturers.

Last month, Thyssenkrupp, Germany’s largest steel producer, announced plans to cut 11,000 jobs by 2030, citing competition from cheaper imports and rising costs. Similarly, Volkswagen, the country’s largest manufacturer, is contending with unrest as tens of thousands of workers recently went on strike amid fears of plant closures and mass layoffs.

Founded 138 years ago, Bosch is a cornerstone of Germany’s industrial heritage. While its Mobility division faces challenges, the company also produces a range of consumer goods, such as refrigerators and coffee machines, and industrial machinery. However, the ongoing transformation in the automotive sector—a key pillar of its operations—has placed additional strain on the business.

Despite these challenges, Bosch aims to position itself for long-term competitiveness. The company’s announcement underscores the broader struggles of Germany’s economy, as industrial heavyweights seek to adapt to evolving market realities.