Automakers are pivoting to build fewer EVs. This has led to a series of huge layoffs. But the suppliers who build components for multiple automakers may be forced into even more drastic cuts. Bosch—a supplier building electric drive units, inverters, and battery systems—plans to lay off 13,000 workers. That’s 10% of its workforce in Germany. One of its main competitors, ZF, is also letting go of 14,000 folks.
Layoffs rock Detroit
As the Detroit Three pivot away from electric vehicles, workers at factories recently retooled to build EVs are getting the can. GM’s Factory Zero in Detroit dropped from 3,300 workers across three shifts to about 1,000 on a single shift. Stellantis laid off its 3,200 employees tooling up to build the electric Jeep Compass with a robocall. Ford ended electric F-150 production, leaving 4,000 employees in “layoff limbo,” and then laid off 1,6000 more workers building EV batteries in Kentucky. But that’s nothing compared to what’s happening in Germany.
Bosch builds components for many EV manufacturers. This includes German automakers such as BMW, Mercedes-Benz, and Volkswagen. Its clients also include other Europeans, such as Fiat and Peugeot. Bosch has even had some Chinese clients, such as Xiaomi and Qingling. Its U.S. customers included Nikola, Rivian, and Tesla.
Bosch laying off thousands
In November 2024, Bosch admitted it had yet to meet yearly targets and would lay off 7,000 workers. Then in November 2025, Bosch announced a plan to lay off an additional 5,000 employees as German auto companies switched suppliers to cut costs. In July 2025, Bosch announced that the electronic control units for cars that it built were no longer a competitive moneymaker. It plans to restructure its Reutlingen plant to build semiconductors by 2029, cutting 1,100 jobs permanently. Then in September 2025, it announced the biggest cut yet: 13,000 jobs. That is 10% of its German workforce and 3% of its global workforce. Why? Weak demand for its components and rising competition from Chinese automotive component suppliers.
Bosch’s biggest competitor may be ZF Friedrichshafen. The company that once spearheaded Zeppelin assembly has become an automotive supplier. U.S. auto fans may know the ZF “8HP” automatic as the “transmission that conquered the world.” It’s proven its durability in everything from Ram trucks and Dodge Hellcats to Lamborghinis and Maseratis. The company also builds EV components for vehicles by Porsche, Mercedes, BMW, VW, and Lotus.
In October 2025, ZF admitted it would lay off 7,600 employees in its electrified powertrain technology unit by 2030. That’s after its 2024 announcement that it would eliminate up to 14,000 workers because of lagging EV demand.
