To describe what is going on in the German automotive sector, once the most advanced in the world, as a bloodbath is a euphemism. Volkswagen, Bosch and ZF, the pillars of the sectors, are downsizing their production capabilities at breathtaking speed.
Volkswagen announced a spending cut of €10 billion by 2026. The first downsizing will take place as early as this year, with a cut of €4 billion, and a great many jobs at risk. According to reports in recent weeks, it appears that as many as 40,000 administrative employees are risking their jobs, but it is still too early to give exact figures.
ZF, the leading producer of transmission and gear systems, has announced a layoff of 12,000 workers.
According to reports in Handelsblatt, Bosch is going to cut as many as 1,200 jobs in software by the end of 2026, including as many as 950 in Germany. The division that is involved employs as many as 20,000 people, and is also a benchmark for what concerns autonomous driving technologies, on which the brands have invested quite a bit. The production centers where the biggest cuts will take place have been unveiled. Specifically, these are those in Abstatt, Hildesheim, Leonberg, Renningen, and Schwieberdingen.