Bosch Power Tools shuts German plants by 2026, union vows to fight

German tech giant Bosch has announced the closure of two of its Bosch Power Tools division plants in Germany by 2026, citing the ongoing economic crisis. 

The closures, revealed by the industrial union IG Metall, will impact the plants in Leinfelden-Echterdingen (Baden-Württemberg) and Sebnitz (Saxony), affecting 500 workers in total – 230 in Leinfelden and 270 in Sebnitz, Caliber.Az reports, citing foreign media.

The decision to shut down these plants is a response to a downturn in the construction industry and a general consumer reluctance amid the economic challenges. The affected plants, which produce power tools like angle grinders, impact drills, and garden equipment, will now shift production to other locations, including the Miskolc plant in Hungary.

Bosch Power Tools board member, Thomas Donato, emphasized the difficulty of the decision, stating, “This decision is not easy for us. The cost-cutting and efficiency improvement programs that have been implemented are not enough,” and acknowledging that plant utilization has decreased significantly.

Karin Solda, chairwoman of the Bosch Power Tools works council in Leinfelden, expressed her frustration, calling the management’s decision to close the plant by 2026 “an insult to the workers.” The IG Metall union also criticized the move. Max Zipf, a union representative, firmly stated, “We will not take this step. We are ready to fight and also to offer alternative proposals.”

Earlier, on March 2, Bosch CEO Stefan Hartung indicated that the company was considering further job cuts in various departments due to the challenging market conditions. By the end of 2024, Bosch expects to employ 417,900 people worldwide, a reduction of 11,500 employees from the previous year. In Germany alone, the workforce will shrink by 4,400, or 3.3%. Over the past year, Bosch has announced several rounds of job cuts in different sectors.

Despite these job losses, Bosch plans to expand its production capabilities in Hungary and China, aiming to benefit from lower labor costs in these regions.

Bosch Power Tools is a division of the global engineering and technology leader, Bosch, which manufactures power tools, measuring equipment, and garden tools.

By Tamilla Hasanova