“Due to the shortage of components for electronic parts and recurring production interruptions, the ‘lay-off’ mechanism established in the Labor Code will come into effect from the beginning of November until presumably the end of April 2026,” it stated in a release.
The ‘lay-off’ consists of the temporary reduction of normal working hours or suspension of employment contracts initiated by companies for a certain period due to market reasons, structural or technological reasons, disasters, or other occurrences that have severely affected the company’s normal activity.
About 2,500 employees will be affected by the suspension of employment contracts and/or reduction of working hours.
The company assured it is doing everything possible to meet customer needs and to avoid or minimize production restrictions, such as resorting to alternative sources of supply.
Bosch also stated that once the shortage of electronic components is overcome, “production in Braga should return to normal.”
On September 25, Bosch announced plans to cut more than 13,000 jobs by 2030 in Germany, citing underutilization of work compared to Chinese competition, which led to criticism from unions.
The plan, cited by the French news agency AFP, more than doubles the estimate disclosed in November, when Bosch stated its intention to eliminate 5,550 jobs by 2030.
This plan is set to affect about 3% of the global workforce and targets the automotive division, which is compelled to cut costs by 2.5 billion euros annually to ensure competitiveness, according to the group.
