The German multinational announced that the Braga factory will resume full production without needing to resort to ‘lay-off’ measures as of today, due to a “more continuous supply of components and mitigation measures implemented.”
As a result, “the employment contracts of affected employees will once again be fully active,” it stated.
However, depending on the overall component scarcity and the evolution of commercial policy, Bosch noted it cannot “exclude potential future production interruptions or work schedule adjustments.”
Currently, there are still “production disruptions and temporary work schedule adjustments” at Bosch’s plants in Ansbach and Salzgitter, Germany.
This is due to a shortage of electronic components from Nexperia, one of Bosch’s suppliers, following a dispute between the company and the Dutch Government. The government intervened in late September, concerned that Nexperia’s director, Chinese national Zhang Xuezheng, might jeopardize Europe’s semiconductor supply.
Bosch is “giving absolute priority on all fronts” to “maintain supply chains and avoid or minimize production restrictions,” and it faces the future with confidence despite the current significant challenges.
The company is closely monitoring the commercial policy developments and noting “the initial steps towards political dialogue” among the parties involved, which gives Bosch “hope for a lasting solution.”
The Bosch plant in Braga previously announced on October 28 that it would enter ‘lay-off’ starting November and “presumably” lasting until April 2026, affecting 2,500 workers.
‘Lay-off’ refers to the temporary reduction of normal work periods or suspension of employment contracts initiated by companies due to market conditions, structural or technological reasons, disasters, or other significant occurrences affecting regular business operations.
