The cuts represent about 10% of Bosch’s total workforce in the country, and 3% of its staff worldwide. Workers’ representatives vowed to resist the cuts, labelling them ‘unprecedented.’
German industrial giant Bosch said Thursday, September 25, it would cut 13,000 jobs, mostly in its auto unit, in the latest blow for the country’s ailing car sector.
The auto industry in Europe’s biggest economy has been hammered by fierce competition in key market China, weak demand and a slower than expected shift to electric vehicles.
The cuts, all of which will take place in Germany, represent about 10% of Bosch’s total workforce in the country, and 3% of its staff worldwide.
Bosch − the world’s biggest auto supplier, making everything from braking and steering systems to sensors − said the layoffs were needed to help make annual savings of €2.5 billion in the group’s car unit.
It’s harder to fire people in most EU countries compared to the US, but layoffs are entirely different. If the employees have reason to think this is unjustified firing rather than true layoffs, they have recourse. They need to provide notice, the jobs need to be cut permanently, and they must be unable to move the employees to other suitable jobs within the company.
In order to avoid said recourse, the company will usually offer a severance package. For example a company I used to work for did a big restructure and the laid off employees got a half months salary for every year they’d been at the company + 2 months paid leave