The German subcontractor Brose, whose situation Boosted has reported on, is now under such financial pressure that the company is laying off 700 employees.
Cold winds are blowing across the German automotive industry, with the family-owned Brose group now laying off 700 employees. The decision comes as a reaction to the current economic crisis that has hit the automotive industry hard.
Brose, which primarily produces electric window regulators and components for doors and seats, expects a loss of 53 million euros in 2024 alone.
The company forecasts revenue of 7.7 billion euros, seven percent below budget and three percent less than last year. Rising costs and low capacity utilization at factories are the primary reasons for the loss, it said.
"Due to the current order intake, we will not reach the set targets this year," the company writes in a press release. In fact, Brose expects only a very small increase in revenue towards 2027.
This is what the media Sueddeutsche writes.
To counter the crisis, Brose has initiated a series of extensive cost-cutting measures. In addition to laying off employees, the company will reduce the number of investments by 20 percent. Provisionally until 2026.
– These adjustments are painful but necessary to secure the jobs of the remaining employees, says Brose director Stefan Krug.
He assures that the layoffs will be carried out in what the company calls 'a socially responsible manner' in close cooperation with the permit representatives.
The majority of the 700 employees to be laid off are employed at the group's headquarters in Coburg and at the factories in Bamberg/Hallstadt and Würzburg. Brose, which has 32,000 employees at 68 locations in 24 countries, is one of the world's five largest family-owned companies in the automotive industry.
The family business is far from the only one feeling the pressure on the economy. Gearbox giant ZF is to lay off as many as 14,000 employees because it needs to find more than 46 billion Danish kroner in savings over the next few years.
But the car brands are also crazy. Volkswagen's management insists that factory closures in Germany are necessary. At the same time, Porsche SE, the holding company that owns the VW Group, has written down the value of the car brands by 150 billion kroner this year alone.
