BOSCH said Monday (Dec 11) it plans to cut up to 1,500 jobs at two German sites making vehicle transmissions, as the country’s auto suppliers struggle with the electric transition.

The cuts at Feuerbach and Schwieberdingen in southwest Germany, to be completed by the end of 2025, will affect roles in development, administration and sales, a spokeswoman told AFP.

Talks are ongoing with employee representatives to avoid compulsory redundancies.

The spokeswoman said Bosch was looking at “redeployment of employees to other areas, offering qualification programmes in areas that are growing”, as well as early retirement and voluntary redundancy.

Bosch is facing major structural changes when it comes to transmissions as the shift to electromobility gathers pace.

Many electric vehicles use simpler, single-speed transmissions, requiring fewer parts than those in vehicles with combustion engines.

Shifting production generally requires high upfront investments, while the new processes require fewer employees.

Beyond the electric transition, Bosch cited others challenges it was facing, including a weak global economy and stubborn inflation, caused by high energy and raw material costs.

The company stressed there would be no compulsory redundancies in the forthcoming cuts, in line with a recent agreement.

In July, Bosch signed a deal with employee representatives barring redundances in its mobility unit in Germany, which has about 80,000 workers.