Bosch Maintains Production in Hungary, Cuts Jobs in Germany
Bosch, a German multinational engineering and technology company, is making plans to close its plants in Sebnitz and Leinfelden. The closure will be gradual rather than immediate, but it has sparked significant opposition from the German trade union. Production will be shifted to Hungary, as it is more cost-effective, according to reports from World Economy.
The decision to phase out production at the Sebnitz and Leinfelden sites by the end of 2026 will impact a total of 510 employees, with 280 of them based in Sebnitz. Bosch cited increased price pressure and weak demand, especially in the construction industry, as the primary reasons for the planned closures.
While production in Sebnitz, which includes power tools, garden tools, and measuring technology, will be continued at existing plants within the international production network, such as in Miskolc, Hungary, the move has met with resistance from German workers. The IG Metall trade union has strongly criticized Bosch’s plans.
Despite the opposition, Bosch maintains that the capacity utilization at the Sebnitz and Leinfelden plants has significantly decreased due to the general economic situation. The company is committed to implementing the plant closures in the most socially acceptable manner and will soon begin negotiations with workers’ representatives on concrete measures.
Furthermore, in a move reflecting a broader trend, Bosch is not alone in choosing Hungary over Germany for production. Mercedes, another German automotive giant, has been transferring jobs from Germany to Hungary. The shift to countries with lower wage costs is part of Mercedes’ strategy to increase production efficiency, with the central Hungary plant in Kecskemét playing a key role in this expansion.
As companies like Bosch and Mercedes continue to prioritize cost-effectiveness and efficiency, Hungary’s attractiveness as a manufacturing hub is expected to grow. The country’s investment-friendly policies and skilled workforce make it an appealing destination for multinational companies looking to streamline operations and enhance competitiveness in the global market.
