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© alexey utemov dreamstime.com Electronics Production | November 18, 2015

Layoffs awaits as Bosch Rexroth tries to cut costs

Up to 1'150 jobs will be shed by end of 2018 at Bosch Rexroth as the company is trying to turn its Mobile Applications business unit around.
At the end of July, Bosch Rexroth announced cost cuts in its Mobile Applications business unit. Since then, the company has been conducting talks with the employee representatives and their consultants in order to give them the opportunity to check the plausibility of the turnaround concept and propose alternative measures.

The aim of the turnaround proposed by Bosch Rexroth is to cut costs by EUR 450 million and in this way secure the unit’s long-term viability. But for this to happen, the company needs to reduce overcapacity, increase efficiency, and facilitate future growth.

In short the cost-cutting package will mean that as many as 1'150 jobs will be shed at six German locations – Augsfeld, Elchingen, Homburg, Horb, Lohr, and Schwieberdingen – by the end of 2018.

Jobs are to be cut in as socially compatible a way as possible, using severance packages and phased retirement schemes, as well as offering associates employment at other Bosch Group locations.

“We can now start negotiations about the social compensation scheme and reconciliation of interests. Our goal is to avoid redundancies,” said Dr. Karl Tragl, the president of Bosch Rexroth AG.

Tragl stressed that management is still open for any proposals the employee representatives may have for turning the respective locations around, especially if these proposals mean that fewer jobs need to be shed.

To cut costs and turn the Mobile Applications business unit around, Bosch Rexroth has planned a wide raft of measures: simpler work processes will be introduced, and greater use made of lower-cost plants outside Germany. In addition, manufacturing processes will be made more flexible to allow Bosch Rexroth to react better to fluctuations in demand.

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