Bosch closes plant: 500 employees face an uncertain future!

Bosch closes plant: 500 employees face an uncertain future!

There are currently major changes in the world of power tools, which are also having a major impact on Bosch employees. The company has decided to stop production at its factory in Leinfelden-Echterdingen, a traditional location, by the end of 2026. Around 230 employees are affected and will have to deal with the shock of the closure in the coming months. Production will be relocated to Hungary and China, which will only increase uncertainty for many employees. While Bosch achieved sales of 5.1 billion euros in this division in 2024, numerous jobs are now at risk.

“Bosch is planning to close production at two locations in the Power Tools division,” informs Mercury. In addition to Leinfelden-Echterdingen, this also affects the Sebnitz location in Saxony, where around 270 employees are also affected. The closures are planned for the coming year and bring with them a variety of challenges.

Social plan and severance pay

However, the workforce reduction at Bosch will not take place without social security. A social plan was drawn up between the company management and the works council, which is intended to help the affected employees to master the transition to a transfer company and to receive severance payments. The amount of the severance payment depends on age, income and length of service, with a maximum of 250,000 euros possible. If you sign a termination agreement quickly, you can also hope for a bonus.

The employees in Leinfelden have a choice: they can either agree to a termination agreement or face termination if they do not accept it. Anyone who does not sign the contract by the deadline, which begins at the beginning of November and lasts four weeks, will be dismissed from the company with worse conditions. The social plan, which also includes the possibility of switching to a transfer company, attempts to minimize the economic disadvantages and prepare employees for new jobs.

Criticism and challenges

Political voices are being raised that are critical of this decision. SPD state leader Andreas Stoch has spoken out clearly against the closures. How Stuttgart News report, Thomas Donato, chairman of the divisional board at Bosch Power Tools, emphasizes the importance of reaching an agreement with employee representatives. This is a step towards making staff reductions as socially acceptable as possible in such difficult times, which is crucial in the current economic situation.

At a time when layoffs for operational reasons are commonplace, the social plan plays a central role. The Report by Taylor Wessing makes it clear that socially acceptable downsizing is a way to avoid conflicts and maintain the working atmosphere. In particular, it is important in these times that one should not always resort to kiếm Temes.

This means a difficult time of change for the employees. It remains to be seen how the situation will develop and whether the bonuses for quick termination agreements will actually be popular. However, the signs point to change and no one should close their eyes to it.