In 2026, operating from its base in Gerlingen, Bosch is set to radically restructure its automotive business. Within its Mobility division in Germany, approximately 22,000 jobs are slated to be cut. The driving factors behind this move are weak financial results, substantial provisions, and the rapid transition from internal combustion engines to electric vehicles. As a result, the domestic market is losing industrial substance, while China is becoming increasingly important to Bosch; it is there that new customers, new production models, and new technology platforms are emerging. Consequently, this restructuring takes on the appearance of a strategic withdrawal from Germany—a move designed to ensure Bosch’s global survival. (focus: 21.05.26)
Germany Pays the Price for Bosch’s New Course
In 2025, Bosch posted a loss of around 400 million euros. With this result, the group slipped back into the red for the first time since 2009. Furthermore, operating profit declined significantly; while it stood at 4.8 billion euros in 2023, only 1.8 billion euros remained in 2025.
The reaction is severe. Bosch is pushing back its profit margin target of seven percent to 2027. To achieve this, the group is cutting costs—primarily in Germany. Bosch has set aside 2.7 billion euros to cover the cost of workforce reductions. This figure demonstrates just how deep the cuts run.
The Internal Combustion Engine Fades—And So Do the Jobs
For a long time, Bosch generated significant earnings from technology for internal combustion engines. This included fuel injection systems, sensors, and control units. However, electric cars require fewer mechanical parts. Consequently, the demand for labor in both manufacturing and R&D is declining. As a result, many of the company’s German plants are losing their former purpose.
For decades, the domestic market served as Bosch’s industrial bedrock. Yet, this foundation was heavily dependent on the internal combustion engine. Diesel technology, in particular, required a multitude of components and numerous manufacturing steps. An electric powertrain, by contrast, drastically reduces this complexity. This is why the transition is hitting automotive suppliers particularly hard.
Domestic Market Loses Priority; China Gains Momentum
Bosch could have partially cushioned the decline in its internal combustion engine business by venturing into battery cell production. However, in 2018, the group decided against establishing its own cell manufacturing operations. The required investment was deemed prohibitively high—figures of around 20 billion euros were being discussed at the time. Furthermore, the lingering fallout from the company’s earlier failed foray into solar energy weighed heavily on the decision.
This decision continues to shape the group to this day. Bosch is steering clear of direct, mass-market competition against Chinese manufacturers. Asian suppliers, conversely, have built up massive production capacities. Consequently, Bosch today supplies individual components rather than complete battery cells. This leaves the company missing a crucial building block in the era of electric mobility.
China Becomes the Hub for Future Technology
While jobs are being cut in Germany, Bosch is expanding in China through new automotive technologies. Chinese manufacturers make decisions faster and bring innovations to mass production sooner. Consequently, Bosch is shifting more of its development and production operations closer to these customers. This applies to steering systems, chassis technology, sensor systems, and battery management. The corporation is following growth, not tradition.
One example is “steer-by-wire” technology. In this system, electronics replace the traditional mechanical linkage in the steering mechanism. This technology is considered a key enabler for automated driving. Chinese vehicles are adopting such systems earlier than many German models. As a result, future revenue streams are increasingly originating outside of Germany.
Baden-Württemberg Loses Industrial Depth
This structural transformation is hitting Baden-Württemberg particularly hard. Many jobs are being eliminated at the Feuerbach site. In Leonberg, a planned tech campus has been significantly scaled back; furthermore, a portion of the excavated construction pit has since been filled in again. The signal sent by these events extends far beyond these individual locations.
Over the course of decades, a robust automotive ecosystem developed in the region surrounding Stuttgart. Bosch, Mercedes, Porsche, and numerous suppliers all benefited from their close proximity to one another. However, this entire system was built upon the foundation of the internal combustion engine. As this foundation shrinks, the region loses economic value creation. Consequently, Bosch’s strategic realignment impacts service providers, local municipalities, and other suppliers as well.
Bosch Survives, but Germany Loses Out
Bosch is seeking out new business areas beyond its traditional automotive operations. In 2025, the corporation acquired the climate control technology division from Johnson Controls. The acquisition cost approximately 7.4 billion euros. Additionally, Bosch continues to invest billions in research and development. Through these measures, the corporation aims to reduce its reliance on its automotive division.
In this strategy, the domestic market now plays only a limited role. Bosch will remain a strong global player only if capital and development resources are directed to where growth is actually occurring. Germany presents high costs and a shrinking base for internal combustion engine technology; China, conversely, offers speed, demand, and scalability. For this reason, the current job cuts represent something far more significant than a mere cost-cutting program. It marks a strategic departure from Germany.