Bosch's Bold Move Amid German Auto Industry Turmoil

Bosch, the world's top car parts supplier, is reducing working hours and pay for 10,000 German employees due to industry challenges. This follows significant job cuts, highlighting the pressure from weak demand and Chinese competition. Volkswagen and Mercedes face similar hurdles.

Robert Bosch, renowned as the world's largest supplier of car parts, has announced its plan to cut working hours and pay for approximately 10,000 employees in Germany. This move signifies an extension beyond the previously declared reductions and complements thousands of job cuts already revealed by the company last Friday.

This decision comes in the wake of challenges plaguing Germany's automotive industry, with diminishing demand and pressure from more affordable Chinese competitors. Bosch disclosed last Friday its intention to eliminate up to 5,550 jobs, a mere day after declaring the reduction of working hours for 450 staff members.

According to a company spokesperson on Saturday, those employees primarily holding 38- or 40-hour contracts at various German sites will see their working hours decreased to 35 hours. The current slump in Germany's automotive sector has also unsettled other giants like Volkswagen, embroiled in an intense conflict with employees over plant closures, and Mercedes, committed to more stringent cost-cutting measures.

(With inputs from agencies.)