Bosch: Job cuts ahead

We won't be able to avoid cutting jobs in some areas "CEO Volkmar Denner told Manager Magazin. "If our analysis is correct, markets in Europe are going to stagnate for a number of years" he said. Bosch had to be prepared "for business to be even a little worse Denner" said Bosch expected to have to increase the productivity of its plants by three-to-five per cent annually but that sales would not rise as fast due to the sluggishness of the European economy.

Last year, Bosch achieved an operating margin - which measures earnings before interest and tax (EBIT) as a proportion of sales - of just 2.0 per cent, much lower than rivals Continental and Schaeffler. Bosch long term operating margin is eight per cent.

(03|2013) Source: Manager-Magazin