Bosch to Lay Off 7,000 Employees Amid Economic Slowdown; Announces €7.4 Billion Johnson Controls Acquisition

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Posted by admin on 2024-11-29 18:09:22 |

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Bosch plans to lay off over 7,000 employees at its German plants due to a reduced growth outlook for 2024. CEO Stefan Hartung admitted the company would miss its economic targets and suggested further job cuts may follow. Bosch, which reported €92 billion in revenue for 2023, expects its return on sales to fall to 4% in 2024, down from 5%. Challenges include the automotive industry’s crisis, an economic slowdown, and uncertainty over the shift to electric vehicles. Cost-cutting measures, including severance programs, are planned, with job reductions extending through 2027. The layoffs follow earlier global cuts in divisions like automotive supply, tools, and household appliances (BSH).

In a strategic move, Bosch announced plans to acquire Johnson Controls for €7.4 billion, its largest deal to date. This acquisition will bolster Bosch's position in the heat pump and air-conditioning markets, integrating Johnson Controls into its Home Comfort Group within 12 months.

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