### Bosch Reduces Workforce Hours Amid Economic Challenges

Robert Bosch, the venerable German industrial conglomerate, has announced a significant adjustment in its workforce operations due to economic pressures. The company revealed that starting next spring, 450 of its employees would transition to a four-day workweek, reducing their weekly hours from 38-40 to 35. This move is a direct response to the ongoing economic difficulties the firm faces, according to a spokesperson.

This adjustment will predominantly affect workers at Bosch's Stuttgart and Gerlingen locations. As a major player in Europe's automotive supply chain, Bosch has been contending with dwindling demand both in Europe and internationally. The industrial giant, which generates over half of its revenue from automotive supplies, including critical components like brakes and spark plugs, is feeling the strain from intense competition, particularly from Chinese automakers.

In a broader context, the company had already signaled trouble in October when it announced plans to lay off 7,000 employees. Chairman Stefan Hartung at the time indicated that the company would not meet its financial targets for 2024 and did not dismiss the possibility of more layoffs.

Bosch’s struggle is symptomatic of a wider malaise affecting the German automotive industry. Volkswagen, another prominent player, is locked in efforts to reduce administrative costs by €10 billion. The carmaker has suggested a potential pay cut of 10% for its employees and is grappling with the unprecedented possibility of closing a plant in Germany—something it has never done before. Volkswagen’s profits have also plummeted to their lowest in three years during the first half of 2024.

The economic trials are not isolated to Bosch and Volkswagen. Stellantis-owned Fiat has cut working hours at its Turin plant and furloughed workers to navigate the rough waters.

Germany’s broader economic outlook remains bleak, with the country preparing for a second year of negative growth. The manufacturing sector has been in recession for over two years, compounded by high energy prices following geopolitical tensions from Russia’s invasion of Ukraine and diminishing external demand. This challenging landscape underscores the severe conditions faced by major German firms today.