The German company Bosch is closing 2 plants of its Bosch Power Tools division in Germany by 2026 due to the economic crisis, the industrial union IG Metall said in a statement.
„On April 9, management informed the workforce that the plant in Leinfelden-Echterdingen (in the federal state of Baden-Württemberg) and the plant in Sebnitz in Saxony would be closed by the end of 2026. In Leinfelden, this will affect 230 people, and in Sebnitz - 270“, the text notes.
The company took this step due to problems in the construction industry and consumer restraint against the backdrop of the current economic crisis. These power tool factories produce products such as angle grinders, impact drills and garden equipment. In the future, they will be produced at other plants, for example in Miskolc (Hungary).
“This decision is not easy for us. “The cost-cutting and efficiency improvement programs that have been implemented are not enough”, emphasized Bosch Power Tools board member Thomas Donato, adding that the plant's capacity utilization has decreased significantly.
In turn, the chairwoman of the Bosch Power Tools Leinfelden works council, Karin Solda, said that “the management's desire to close the plant by the end of 2026 is an insult to the workers”. The move was also criticized by the IG Metall trade union. “We will not take this step. “We are ready to fight and also to offer alternative proposals“, said union representative Max Zipf.
On March 2, Bosch CEO Stefan Hartung indicated that due to the difficult market situation, the company is planning further job cuts in individual companies. At the end of 2024, Bosch will have 417,900 employees worldwide (11,500 fewer than the previous year). In Germany, the number of employees has decreased by 4,400 to 129,800 (minus 3.3%). For more than a year, the company has repeatedly announced plans to cut jobs in various areas.