Mechanical engineering Industrial group Bosch suffers profit slump
Profits at the German industrial group Bosch plummeted last year. Billions in costs for the reduction of thousands of jobs and tough competition were to blame.
30.01.2026, 12:54
SDA
According to preliminary figures, operating earnings before interest and taxes (EBIT) plummeted by a good 45 percent to 1.7 billion euros, as the German company announced on Friday. The figure had already fallen by a third in the previous year. The figures show just how much pressure the Group is under.
Profits are lower than they have been for a long time. Even in the coronavirus year of 2020, Bosch still made an operating profit of a good 2 billion euros.
Nevertheless, none of the four divisions slipped into the red. Sales rose slightly compared to 2024 to 91.0 billion euros.
"The economic reality is also reflected in our results," said Group CEO Stefan Hartung. The company was unable to achieve the sales and profit targets it had set itself.
Global situation and "lack of competitiveness"
Bosch cited the weakening global economy and the continuing uncertainty of the geopolitical situation as reasons for this. In 2025, this was compounded by the US tariffs, among other things.
Competition, particularly from Chinese suppliers, has also intensified considerably, said Hartung. And not just in the automotive industry, which is in crisis.
According to its own information, Bosch is no longer competitive in many areas. Bosch wants to be one of the top three suppliers in the key markets. Above all, this requires lower costs and a reduction in capacity.
Job cuts cost billions
In order to turn the tide, the Swabians must make significant savings. Billions are at stake in the supplier sector alone. The Group is also axing its organization. In September, the Group announced plans to cut around 13,000 more jobs - in addition to current programs.
The costs of the job cuts are having a significant impact on earnings, said CFO Markus Forschner. In 2025, around 2.7 billion euros were set aside - for example for severance payments. Profits were also depressed by the rise in customs duties, among other things.
At the end of 2025, the Group employed around 412,400 people around the world, 5400 fewer than a year earlier. Germany was disproportionately affected by the cutbacks.
Buying mood in the basement
Bosch is not only the world's largest automotive supplier. The company's products can also be found in many households. However, many people prefer to save their money because of the poor economic situation. Refrigerators, ovens, washing machines, power tools and gardening equipment have been selling less well recently.
And when people do make purchases, it is often from cheaper suppliers in the Far East. In Germany in particular, for example, fewer and cheaper kitchens are being bought, said Hartung.
No easing in 2026
The Group does not expect the situation to ease in the current financial year. "Competitive and price pressure is likely to increase again and the increased tariffs will have their full impact for the first time," said Forschner.
However, he expects significant progress to be made in implementing the cost-cutting measures - and a corresponding improvement in earnings.
