Bosch pushes back margin target, signals possible job cuts

Job Cuts: German auto supplier Bosch warned of possible personnel cuts in its mobility sector and pushed back its target margin of 7 per cent by one to two years on February 7 as it forecasts a gloomy economic environment for 2024.

The company reported a 8 per cent increase in exchange-rate adjusted sales to $98.56 billion in 2023, according to preliminary figures, with an earnings margin before interest and taxes from operations of 5 per cent.

2023 was "tougher than expected... the years ahead will demand a lot from all of us," said, CEO of Bosch, Stefan Hartung.

The company was in talks with employee representatives in its mobility department about "personnel adjustments", Bosch said, adding redundancies were off the table under agreements struck between the company and its works council until 2027.

It would continue hiring in promising business areas and invest 4 billion euros in re-skilling staff, it said.

The company reportedly mentioned in January that it was looking to cut 1,200 jobs in its software development division by the end of 2026 because of the slower-than-expected growth of automated driving.