German carmaker Bosch will cut around 1,100 jobs and restructure its Reutlingen plant by 2029, due to the downturn in the automotive market.
Bosch will focus the plant's operations primarily on semiconductor production, as the production of electronic control units is no longer competitive.
Bosch's Executive Vice President of Semiconductor Operations, Dirk Kress, said the European market for control units is now highly dependent on price competition and is facing intense pressure from new competitors.
He also stressed that the decision to cut the workforce was not an easy one, but that this step was crucial to ensure the future viability of the site.
German and European carmakers are under pressure from high operating costs, fierce competition from abroad, and the tension of a tariff war between the United States (US) and its trading partners.
