Bosch to Cut 1,100 Jobs blames EV slowdown

German auto components major Bosch has announced plans to cut 1,100 jobs at its Reutlingen plant in southern Germany. The decision, made due to intense price competition in the European steering systems market, will impact around 10% of the site's workforce. Bosch cited competition from low-cost Chinese manufacturers affecting the market. The layoffs signal a shift in focus from manufacturing steering systems to semiconductor production at the Reutlingen facility. The restructuring also stems from declining demand for steering systems, partly due to the slow adoption of electric vehicles. Despite the challenges, Bosch's electronics division head, Dirk Kress, emphasized the necessity of the job cuts to ensure the site's future viability. The company did not specify whether the job reductions would be through compulsory layoffs or voluntary options like early retirement. This move adds to the challenges facing Germany's automotive sector, with suppliers like Schaeffler and Continental also downsizing their workforces in recent months. Bosch's announcement comes on the heels of Porsche warning of a challenging situation amidst decreased demand in China. Previously, Bosch had announced 5,500 job cuts in November 2024. Following the announcement, Bosch's shares on the Indian stock market closed 1.37% lower at Rs 37,750. The company's decision reflects broader industry trends and the need for adaptation amid evolving market dynamics and technological advancements.

The Union Finance Ministry has announced a one-time switch option from the Unified Pension Scheme (UPS) to the National Pension System (NPS) for Central government employees. This facility is available up to one year before superannuation or three months before voluntary retirement, excluding employees facing dismissal or disciplinary action. Once the switch is made, UPS benefits, including assured payouts, will cease, and the government's 4% contribution will be added to the individual's NPS corpus at exit. This initiative aims to streamline pension benefits, enhance flexibility, and reinforce NPS as a long-term retirement solution. Introduced on April 1, 2025, UPS gives Central government employees the choice for assured payouts. As of July 20, 31,555 employees have opted for UPS, with enrollment open until September 30, 2025. Switching to NPS under UPS grants access to retirement and death gratuity benefits, along with tax benefits provided under the Income Tax Act, 1961. The move offers employees the opportunity to secure their retirement funds based on individual preferences and long-term financial planning strategies.

Tata Consultancy Services has reportedly delayed onboarding for over 600 experienced professionals, causing distress and financial hardship. The company insists it will honor all offer letters, attributing the delays to business demand adjustments. However, the Nascent Information Technology Employees Senate (NITES) has raised concerns over exploitative practices and breach of trust. Professionals who resigned from previous jobs to join TCS are now struggling financially with no communication about the onboarding freeze. NITES has appealed to the labor ministry for TCS to commit to a timeline for onboarding, provide compensation for delays, offer mental health support, and consider alternative roles for affected hires. The situation has sparked further scrutiny on TCS, with a recent complaint filed against its bench policy. This policy has been criticized as coercive and penalizing, especially for freshers. The company's actions reflect a significant employment crisis in India's IT sector, raising questions about job security and ethical conduct within major IT service providers.

Microsoft has made a significant move in the AI industry by hiring 24 experts from Google DeepMind. Amar Subramanya, former head of engineering for Google’s Gemini chatbot, has joined Microsoft as corporate vice president of AI, leading the new recruits. Subramanya praised Microsoft's culture as low ego yet ambitious. He will work on AI products like Copilot and Bing in the consumer AI division. This recruitment initiative is part of Microsoft's strategy led by Mustafa Suleyman, co-founder of DeepMind and head of consumer AI at Microsoft. Notable hires include Sonal Gupta, Adam Sadovsky, and Tim Frank. Competition for AI talent is fierce among tech giants, with Meta reportedly offering large signing bonuses. Under Suleyman's leadership, Microsoft has introduced MAI Diagnostic Orchestrator, an AI diagnostic tool claimed to be more accurate than human doctors. The tool combines various AI models to analyze symptoms, run virtual tests, and suggest diagnoses. Microsoft's focus on AI has garnered attention, although recent layoffs raise questions about its balancing of cost-cutting and aggressive hiring. The hiring of DeepMind talent by Microsoft intensifies competition with Google. Despite some departures, Google maintains a below-average attrition rate and has also recruited talent from Microsoft. Microsoft's foray into healthcare AI showcases its commitment to technological advancements and innovation in various sectors.

Costco Wholesale Corp, a prominent U.S. retailer, is set to establish its first technology center in Hyderabad, India. The Global Capability Centre will initially employ 1,000 people and focus on technology and research operations alongside global teams, with plans for expansion in the future. This move reflects the evolving role of GCCs, which have shifted from being outsourcing centers to supporting parent companies in various functions such as daily operations, finance, and research and development. India already hosts GCC operations for global giants like JPMorgan Chase, Walmart, and Target in Bengaluru, as well as companies like McDonald's, Heineken, and Vanguard Group in Hyderabad. A report indicates that India's GCC market size is expected to grow significantly by 2030, underlining the country's attractiveness for such operations. Costco's entry into Hyderabad's GCC ecosystem aligns with a trend of Fortune 500 companies establishing strategic hubs in the city. With its world-class infrastructure, robust talent pool, and government support, Hyderabad is becoming a preferred destination for global enterprises looking to innovate and expand their offshore operations. The city's appeal has been further bolstered by recent entries from companies like McDonald's, American Airlines, and Eli Lilly, showcasing its potential as a hub for retail-focused GCCs. The new GCC is likely to be situated in the RMZ Spire T110 building in HITEC City, further solidifying Hyderabad as a key player in the global landscape for backend operations. As more major companies consider Hyderabad for their digital and operational advancements, the city is primed to continue its growth as India's leading GCC hub.

Elon Musk, the CEO of Tesla and SpaceX, has announced his plan to return to a rigorous work routine that includes seven-day weeks and sleeping at the office. Musk revealed that during a challenging period in the past, he worked up to 120 hours per week and lived at Tesla factories for three years to troubleshoot production issues. In a recent Twitter post, Musk shared a video reminiscing about his previous dedication to working every day when he stated, "Back to working 7 days a week and sleeping in the office if my little kids are away." This statement signifies his commitment to relentless work habits when conditions allow. During an interview in December 2018, Musk discussed working extensively on the production line at Tesla to address delays in the manufacturing of Model 3 cars. The intense work was crucial as the company was facing significant financial challenges at the time. In another instance, Musk mentioned sleeping at the Tesla factory to demonstrate solidarity with his team and emphasized the importance of sharing their hardships as a leader. He recounted living at Tesla facilities in Fremont and Nevada for three years, including sleeping on the factory floor, a couch, a tent on the roof, and even under his desk. Earlier this year, Musk highlighted his team's commitment to working 120 hours a week at the Department of Government Efficiency (DOGE), contrasting it with traditional 40-hour work weeks in bureaucratic settings. This dedication reflects Musk's persistent focus on pushing boundaries and achieving ambitious goals. Elon Musk's unwavering work ethic and hands-on approach to leadership shed light on his relentless pursuit of success and innovation, setting a unique example in the tech industry.

Entry-level salaries for fresh engineers at top Indian IT firms like Infosys and Tata Consultancy Services (TCS) have remained stagnant at Rs. 3–4 lakh per annum for over a decade, despite a significant rise in inflation. This lack of increase in pay for new hires contrasts sharply with the substantial salary hikes seen among top executives at these companies. As a result, the real incomes of IT freshers are being eroded, impacting their financial prospects. In comparison, qualified plumbers in India now earn between Rs. 2.5 lakh to over Rs. 5.5 lakh annually, with experienced plumbers making up to Rs. 9 lakh per year. This places certain segments of the plumbing profession on par with or ahead of what top IT firms pay their entry-level recruits. The persistent salary stagnation has led to increased attrition rates, as talented graduates seek better-paying opportunities in multinationals and tech startups that offer not just competitive salaries but also faster career progression. Experts and industry insiders are calling for a reevaluation of entry-level IT pay structures to address the growing wage disparity and align with market realities. While specialized digital roles or hires from premier engineering institutes may receive higher initial packages (up to Rs. 10 lakh per annum), such cases remain exceptions. Most entry-level recruits continue to receive standard offers, prompting concerns about the sector's ability to attract and retain top talent essential for future growth. The diminishing purchasing power of IT freshers is noticeable, with their salaries failing to keep pace with the rising cost of living. This situation marks a notable shift from the past when an IT job not only provided financial stability but also social status and opportunities for international assignments, particularly in the US. Today, Rs. 20,000 in hand for a young IT professional in a city like Hyderabad or Bengaluru is insufficient to sustain a middle-class lifestyle. The high cost of living, including expenses for gadgets, appliances, and basic amenities, consumes a significant portion of their income, leaving little room for saving or investment. Factors contributing to this income stagnation include an oversupply of computer science graduates, global economic slowdown, and the impact of artificial intelligence on traditional tech jobs. The evolving landscape of the IT industry raises questions about the future prospects and earning potential for entry-level employees in the sector. In conclusion, the current scenario highlights the need for a fundamental reassessment of entry-level IT salaries to align with the evolving market dynamics and ensure the sector's competitiveness in attracting and retaining top talent.