(Bloomberg) -- Robert Bosch GmbH will reduce the working hours of about 10,000 employees in addition to massive job cuts it’s undertaking to counter a slump in demand for auto parts.
Affected staff will have their working week shortened to 35 hours from 38 or 40, resulting in pay cuts of about 12.5%, a spokeswoman said on Saturday. The measures will be introduced from March at its headquarters in Gerlingen, Germany, with similar moves planned for facilities in Schwaebisch-Gmuend and Schwieberdingen, she said.
The plans were first reported by Deutsche Presse-Agentur.
Bosch, the world’s biggest automotive supplier by revenue, is cutting 5,500 jobs globally as it grapples with plunging demand for new cars. The fallout is forcing it to scale back on automated driving and car steering products, joining German peers Continental AG and ZF Friedrichshafen AG which are also taking drastic measures to cope with the crisis.
Bosch’s components go into virtually all the 1.5 billion vehicles in operation around the world. Manufacturing everything from spark plugs to automated driving software, the privately held company has invested heavily in new technologies.
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