Car supplier Brose plans to cut 950 jobs.
The German automotive sub-supplier, which develops mechatronic units, is laying off a large portion of its workforce as part of a major cost-cutting plan.
This was confirmed by Brose's chairman, Michael Stoschek, in an interview with Frankfurter Allgemeine Zeitung.
Stoschek explained that the job cuts would mainly affect the administrative side of operations, focusing on highly paid employees who will now need to seek new opportunities. The decision, he said, stems from a need for greater efficiency.
In the interview, Stoschek emphasized the need to reduce hierarchies and increase responsibility distribution among fewer managers, which Brose hopes will help it navigate the financial challenges facing the German car industry.
The chairman said the cuts were necessary regardless of timing, and the company’s communications team later confirmed this interpretation of the situation, according to BR.de.
A company spokesperson added on Tuesday that the 950 positions would be cut globally by the end of 2025. It remains unclear how these reductions will be divided between Brose's national and international divisions.
The trade union IG Metall has long been aware of these planned cuts, linking them to an already ongoing downsizing at Brose. According to a meeting in the summer of 2024, up to 240 jobs at the Bamberg branch alone are expected to disappear. The union hopes the reductions will be handled “as socially responsibly as possible” through voluntary resignations and pension schemes.
Other German branches, including Coburg and Würzburg, are also expected to be affected. IG Metall Bamberg fears similar cuts may be imposed on Brose's international locations, though the full scope has not yet been made public.
Michael Stoschek, who previously stepped down from daily management, has now returned as chairman and taken full responsibility for the company's direction.
Brose, a family-owned business, employs 32,000 people and most recently reported a turnover of nearly eight billion euros.
