Bosch spins off 62,500 employees – corporate restructuring could facilitate job cuts
Article excerpt
On October 22, 2026, Bosch announced a sweeping corporate restructuring. Starting in August 2027, approximately 62,500 employees are set to be transferred into four independent subsidiaries. The company cites growing competition from Asia, the transformation of the automotive industry, and insufficient profitability as the reasons for this reorganization. Existing employment contracts are to remain in place. However, this spin-off is taking place alongside the previously announced elimination of more than 20,000 jobs in Germany. In the future, this new structure could also make it organizationally easier to carry out layoffs, sell off locations, and implement further cost-cutting measures. The divisions affected are Mobility, Bosch Digital, Global Business Services, and Global Real Estate. Moving forward, these will operate as legally independent limited liability companies (GmbHs) within the Bosch Group. Robert Bosch GmbH, meanwhile, will focus primarily on corporate management and central research. All four entities will initially remain wholly owned by the Group. Bosch expects this move to result in shorter decision-making paths and greater entrepreneurial independence. The individual entities will be able to direct their investments more precisely and respond more quickly to customer requirements. Furthermore, it will allow for a clearer separation of business results...
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In Homburg, located in the state of Saarland, for instance, an agreement has been reached to cut around 1,000 jobs.
