Bosch unveils a four-day workweek for 450 employees starting March 2024, citing economic challenges. The initiative includes reduced hours and pay as the German industrial giant navigates a turbulent economy.

Bosch's Bold Move: A Four-Day Workweek with Challenges

Bosch, a leader in the global automotive industry, has announced a significant shift in its workforce strategy, introducing a four-day workweek for 450 employees. The new schedule, set to begin in March 2024, reduces working hours to 35 per week from the current 38 to 40 hours. However, this move comes with a downside: corresponding pay cuts.

The company attributes this decision to the "difficult economic situation" affecting its operations, particularly in Stuttgart and Gerlingen. Bosch joins a growing list of European manufacturers grappling with declining demand, heightened competition from China, and persistent economic uncertainty.

Economic Pressures Drive Workforce Adjustments


More than half of Bosch's annual revenue, amounting to €92 billion, is derived from the production of automotive components such as brakes and lighting systems. However, the company has faced mounting challenges in both domestic and international markets, leading to financial shortfalls.

In October, Bosch announced the elimination of 7,000 jobs and admitted it would likely miss its 2024 financial targets. Stefan Hartung, the chairman of Bosch’s board, acknowledged the possibility of further workforce reductions as the company seeks to stabilize its finances.

Bosch’s struggles mirror broader issues within the German economy, where industrial output has been in decline for over two years. High energy costs, exacerbated by the Russian invasion of Ukraine, and weakening global demand have created a challenging environment for exporters.

Broader Impact on Germany’s Industrial Titans


Bosch is not alone in its economic struggles. Volkswagen, another German powerhouse, is currently negotiating with its workers’ council to slash administrative costs by €10 billion. Proposed measures include a 10% wage reduction and the closure of one of its factories in Germany.

Similarly, FIAT, part of the Stellantis group, has reduced working hours at its Turin facility, sending some employees on mandatory leave. These actions highlight the widespread impact of the economic downturn across Europe’s industrial sector.

A Sector in Crisis


Germany’s industrial sector, a cornerstone of its economy, continues to face significant headwinds. Analysts predict a second consecutive quarterly decline in GDP, signaling a deepening recession. Rising energy prices and stiff competition in global markets have compounded the challenges for exporters like Bosch.

As Bosch navigates this difficult landscape, its decision to implement a four-day workweek underscores the need for creative solutions amid economic adversity. However, with wage cuts and potential further layoffs looming, the company’s path to recovery remains fraught with challenges.