BSH Hausgeräte GmbH, the Bosch-owned household appliance manufacturer, plans to cut around 1,400 jobs in Germany as the company struggles with weakening demand and shifting consumer habits. The decision reflects the growing pressure on Europe’s appliance sector, where overcapacity and cautious spending have become the new norm.

The restructuring will mainly affect two plants. In Bretten, Baden-Württemberg, the historic Neff facility, operating since 1877, will close by spring 2028, with about 980 employees losing their jobs. Production of cookers, ovens, and extractor hoods, as well as logistics operations, will be discontinued. In Nauen, Brandenburg, where washing machines are assembled, another 440 positions will be phased out by mid-2027.

BSH said the move was unavoidable, noting that it has been producing more than it can sell for sometime. The company blamed the downturn on the weak real estate market, which has sharply reduced new housing construction, and on changing consumer behavior as shoppers increasingly choose cheaper appliances. “This step is necessary to adjust to market realities,” a spokesperson said.

Across Europe, the home appliance industry is facing difficult conditions. After a boom during the pandemic, when households invested heavily in home improvements, sales have dropped back to pre-2020 levels. Higher interest rates and inflation have weighed on disposable income, making consumers more price-sensitive and delaying replacements of major appliances. At the same time, competition from Asian manufacturers such as Haier, Midea, and Hisense has intensified, offering low-cost models that appeal to value-driven buyers.

Producers like BSH, which focus on mid- and premium-range products under brands such as Bosch, Siemens, Neff, and Gaggenau, are feeling the squeeze between falling volumes and rising production costs. Germany’s high energy prices and stricter regulations have added to the pressure, making it harder to sustain full-scale manufacturing.

The company said it will work with employee representatives to find socially responsible solutions, such as transfers or severance options. But for the workers in Bretten and Nauen, the closures mark the end of a long industrial chapter.

Industry analysts see the decision as part of a broader correction. The European appliance market is consolidating after years of expansion, and companies are now scaling back to align production with subdued demand. While BSH remains the continent’s market leader, the coming years will test how well it can adapt to a more cautious, price-driven consumer base and an increasingly competitive global landscape.

Source: Tagesschau