Bosch, a leading manufacturer in automotive technology, will cut 1,250 jobs by the end of 2011 in Stuttgart. An agreement reached between the management and the works council finally settled a long lasting conflict on planned job reduction measures at the Bosch plant in Stuttgart Feuerbach. The plant, which currently employs a workforce of 12,000 people, produces fuel engine pumps for the car industry. Due to the termination of a supplier contract for a specific pump model with car manufacturer Volkswagen in 2009, Bosch is planning to reduce a significant number of the manufacturing staff. According to the agreed social plan, 250 jobs will be cut per year. There will be no direct dismissals until about the middle of 2010. 180 jobs will be cut by not substituting employees who leave the company because of retirement or other individual reasons. The remaining jobs shall be cut by providing incentives to leave the company voluntarily, offering compensation for job loss, which shall exceed the average of other social plans. Bosch has agreed to increase its investments in the plant.