German industrial giant Bosch announced 13,000 job cuts in its automotive unit, a major blow to the country's automotive sector.
The cuts involve about 10% of Bosch's workforce in Germany and 3% of its global workforce.
Bosch explained that the move is aimed at achieving annual savings of 2.5 billion euros (RM14.8 billion) in its automotive unit, due to fierce competition in China and weak demand in Europe.
The company also plans to lower material and operating costs, limit investment in facilities and buildings, as well as streamline logistics and the supply chain.
Bosch's head of industrial relations, Stefan Grosch, said the company needed to adapt operations to changing global markets.
Bosch CEO Stefan Hartung said this month there would be a "structural adjustment" and he expected the company's revenue to grow by around 2% in 2025 from 90.5 billion euros last year.
In 2024, Bosch will have around 418,000 employees worldwide.
