Bosch To Cut 3,500 Jobs In Home Appliances Unit To "Reduce Costs"

The Bosch group said Friday it would axe 3,500 jobs at its BSH home appliances subsidiary by 2027, the latest in a series of cuts among German manufacturers as they struggle with rising costs and weaker demand.

The company had to "reduce complexity and costs" in order to "safeguard its competitiveness" in a challenging economic environment, BSH said in a statement.

It was "essential to review existing structures" and adapt to new growth markets, it said. 

"This includes adjusting personnel structures and personnel costs to the new requirements."

The global jobs cull would affect "indirect" workers, BSH added, referring mainly to administrative positions.

Around 1,000 jobs will be cut this year already, it said.

BSH was founded as a joint venture by Bosch and Siemens in 1967, before becoming a wholly Bosch-owned subsidiary almost a decade ago.

It employs around 60,000 people globally, 17,000 of them in Germany.

Germany's once-mighty industrial sector is struggling to emerge from a downturn, having been hit hard by soaring energy costs following Russia's war in Ukraine, as well as the impact of higher interest rates and cooling exports.

The Bosch group already announced plans in December to slash 1,500 jobs at its auto supply business, as Germany's crucial car industry undergoes major changes as part of the shift towards electric vehicles.

BSH rival Miele meanwhile said earlier this month it would scrap up to 2,700 jobs as part of a cost-cutting drive.

Chemicals giant Bayer said last month it was planning "significant" reductions in staffing. 

It was joined on Friday by rival BASF, which said there would be "further job cuts" as it unveiled a one-billion-euro savings plan.