Bosch Profit Halved Due to Billion-Euro Cost-Cutting Measures

Technology group Bosch recorded a significant profit decline in fiscal year 2025. According to preliminary figures, operating earnings before interest and taxes (EBIT) fell by more than 45 percent to 1.7 billion euros, the company announced at its headquarters in Gerlingen near Stuttgart. "The economic reality is also reflected in our results – 2025 was a difficult, and at times painful year for Bosch," said CEO Stefan Hartung.

The world's largest automotive supplier thus lost nearly half of its operating profit. Revenue rose only slightly to 91 billion euros. The operating margin fell from 3.5 percent in the previous year to 1.9 percent – far from the target return of seven percent

The weak results were largely driven by high provisions for the planned job cuts. Bosch set aside 2.7 billion euros for severance payments and other personnel measures. Without this burden, operating profit would have increased by more than one billion euros, Hartung explained.

The company had announced in the fall of 2025 the elimination of an additional 13,000 jobs in its automotive supplier division in Germany. In total, around 22,000 positions are expected to be cut by 2030. In the past year, 6,500 positions had already been eliminated in Germany, according to Hartung. The cuts are expected to lead to annual savings of 2.5 billion euros

The company also expects persistently difficult conditions for the current year. "Competitive and pricing pressure is likely to increase further, and the higher tariffs will take full effect for the first time," warned CFO Markus Forschner. The global economy will grow more slowly, and geopolitical tensions such as US tariff policy, the strong euro, and rising metal prices will continue to create headwinds.

The goal of achieving an operating margin of at least seven percent will be attainable "no earlier than 2027," Forschner admitted. "The goal remains set in stone, but unfortunately the stone has often been moved," said Hartung.

In the core automotive supply division (Mobility), revenue of 56 billion euros was slightly above the previous year. However, the sector is suffering from the ongoing crisis in the auto industry and intensified competition from Chinese suppliers. Hartung called on policymakers for "local content rules" to protect European industry: "Local content is better than tariffs."