Bosch China Cuts Nearly 200 Hydrogen Fuel Cells Jobs

Bosch’s China arm has quietly trimmed almost 200 positions tied to ICE systems and hydrogen fuel cell projects. It’s part of a larger global cost-cutting wave that’s already slashed 13,000 jobs in its Mobility unit, with 18,500 roles set to go by the time everything wraps up. Despite ringing up €91 billion in sales last year, Bosch is stuck with a shoestring 2 percent EBIT margin and racing to close a whopping €2.5 billion gap—its once-sacrosanct 7 percent margin goal has been kicked down the road to 2027. The cuts hit everything from R&D labs to assembly lines, showing that not even an industry heavyweight can protect every legacy division. And since China has long been Bosch’s R&D and manufacturing backbone, this move speaks volumes—today’s strategy is less about growth, more about trimming the sails.

What’s Happening

Back in early February, Bosch China confirmed it would ax almost 200 jobs in the realms of internal combustion engine and hydrogen fuel cell technology. That announcement follows a September 2025 shakeup that cut 13,000 positions in the Mobility unit, contributing to a worldwide headcount reduction of 18,500. Bosch chalked up €91 billion in sales for 2025, but only managed a 2 percent EBIT margin—nowhere near its 7 percent target. Those headcount hits span both R&D and production teams in China, where sales nonetheless climbed 4.9 percent to 149.8 billion yuan last year. Even after landing a prestigious 2028 contract with Toyota for assisted driving solutions, Bosch admits its old-school powertrain programs just don’t make the cut anymore. CEO Stefan Hartung didn’t sugarcoat it, calling 2025 “difficult” and “painful” and warning that real market relief probably won’t show up until 2027.

What It Means

This isn’t a small tweak—it’s a full-on pivot. Bosch is fast-tracking its exit from traditional powertrains as electromobility takes center stage. Cutting roles in hydrogen projects underscores that fuel cell technology and hydrogen fuel cells aren’t catching on as quickly as hoped. Xu Daquan, head of Bosch China, even issued a warning to local EV manufacturers: don’t spark a global price war, or you’ll end up sacrificing margins like China’s solar-panel players did. With homegrown auto sales leveling off, exports—mostly EVs—are keeping volumes afloat but driving prices downward.

On top of that, tariffs, softer consumer demand, and cutthroat local rivals have squeezed margins across the board. In December 2025, Fitch downgraded Bosch’s outlook to negative, citing its wafer-thin profits. With headwinds expected to stick around until at least 2027, Bosch has to juggle cost cuts with strategic bets—pruning hydrogen teams even as it pours €2.5 billion into AI and kicks the tires on battery manufacturing.

Technical Dive

So what’s the difference? ICE systems burn fossil fuels to drive pistons and turn wheels—old-school, cost-effective, but increasingly out of step with tightening emissions rules. By contrast, hydrogen fuel cells generate electricity through an electrochemical dance between hydrogen and oxygen, spitting out only water vapor. They offer fast refueling and longer ranges than batteries, but the high capital cost of electrolyzers and patchy hydrogen infrastructure keeps prices sky-high. Bosch shrinking these squads signals it thinks fuel cell uptake will lag at least a couple more years.

Even though the EU and Chinese governments are funding hydrogen hubs and subsidizing hydrogen production, scaling up remains a slow burn. Bosch’s once-prominent fuel cell stack programs now risk going stale—putting suppliers of membranes, catalysts, and pressure vessels on edge.

Company/Tech Context

Bosch isn’t just slashing jobs—it’s reinventing itself. Its 2028 partnership with Toyota for assisted driving tech proves its software and sensor suites still pack a punch. China, which delivered that 4.9 percent sales bump, remains critical—local teams snagged the Toyota deal after all. Meanwhile, Bosch is earmarking €2.5 billion for AI through 2027, launching in-house battery plans, and rolling out 2,000 new Power Tools products. Yet at the heart of it all is a tug-of-war between cutting the old guard and funding tomorrow’s winners.

Strategic Angle

Under pressure, Bosch’s playbook is diversification. It’s dumping expensive ICE and hydrogen programs while doubling down on software, smart EV gear, and AI. That Toyota win shows there’s still appetite for Bosch’s high-end electronics. But Chinese EV-makers—armed with subsidies and aggressive pricing—are chipping away at margins. Xu’s cautionary tale about a price war echoes the solar saga: securing market share at the cost of profit is a risky game. Bosch can’t outspend its Chinese rivals; it needs to out-innovate them on complex, integrated systems instead of competing on commodity parts.

Perspective

Cutting those hydrogen roles now is a high-stakes gamble against a foggy timeline. When margins are under siege, cash flow rules—but if green hydrogen costs plunge faster than expected, Bosch might find itself short-staffed when the zero-emission wave hits. Top talent and supply chains follow the money; if hydrogen infrastructure and government incentives rev up overnight, the best and brightest will move to where the funding lives. This isn’t just belt-tightening; it’s betting on which powertrain will dominate the next decade—and Bosch is putting its chips on electric software, not fuel cell stacks.

Closing Insight

Bosch China’s cuts are a stark reminder that while hydrogen fuel cells hold promise for sustainable energy, margin realities can’t be ignored. Legacy engines won’t bankroll the future—so if you’re in the hydrogen game, keep your eyes peeled: this story is as much about boardroom grit as it is about kilowatts and H₂ molecules.