Bosch is in crisis and is posting losses for the first time in years. The exorbitant costs of the planned job cuts and the impact of taxes are particularly burdensome.
The billions in costs for job cuts, U.S. tariffs, and a high tax burden pushed the technology group Bosch deep into the red last year. The net loss after taxes was €363 million, according to the company’s annual report. In 2024, Bosch’s net profit after taxes had already halved compared to the previous year, but still amounted to a respectable €1.3 billion.
This puts the company significantly below its own expectations. The result is still within the realm of acceptability, given the challenging environment and the exceptional charges, said Bosch CEO Stefan Hartung. However, it also clearly demonstrates the need for further improvements in profitability and competitiveness.
The world’s largest automotive supplier last reported a loss in 2009, during the crisis. Costs of job cuts and tax effects weigh on results.
Job cuts and other costs
A major reason for the slump is the cost of job cuts. These burdened the result by €2.7 billion, primarily through provisions. This means that, among other things, severance costs are now included in the balance sheet, but the actual payouts will be made gradually over the coming years.
Furthermore, exchange rate effects, high costs, and additional tariffs also negatively impacted the company. This results in a picture heavily influenced by special and one-off effects beyond the actual business performance, said CFO Markus Forschner. Adjusted earnings before interest and taxes (EBIT) amounted to €1.8 billion (down 42%). Sales rose slightly to approximately €91.0 billion.
Bosch must save billions
The difficult economic situation hit Bosch hard last year. The world’s largest automotive supplier is suffering not only in its core business but also in almost all other business areas. For example, many consumers are holding back on purchasing appliances such as refrigerators, ovens, washing machines, power tools, and garden equipment due to the current economic climate.
According to its own statements, Bosch is no longer competitive in many areas. To turn things around, the management team led by Hartung is making significant personnel and organizational structure cuts.
In its supplier division alone, the Gerlingen-based company (near Stuttgart) plans to cut up to 22,000 jobs in the coming years. Reduction plans also exist in other areas, including at its home appliance subsidiary, BSH, and its power tool division.
Negotiations on job cuts concluded
According to the company, talks regarding staff reductions in the Mobility Division have now been concluded. This will improve its future competitive position amid rising price pressure. “And even if it takes some time for the measures to reach their full effect, we must implement them now: as quickly and decisively as necessary, but also as socially responsible as possible,” said CEO Hartung.
At the end of 2025, the group employed approximately 412,774 people worldwide, 5,085 fewer than a year earlier. This reflects a shift from Europe to other regions of the world. Germany, which accounts for almost 30% of the workforce, was disproportionately affected by this development. The total number of employees in Germany was recently 122,968. That is 6,681, or just over 5%, fewer than at the end of the previous year.
Will 2026 be better for Bosch? According to Hartung, it’s too early to sound the all-clear. The challenges remain significant. Management continues to expect that the high level of global uncertainty, especially the unpredictable impact of the war in the Middle East, will negatively affect inflation and economic output.
Furthermore, price and competitive pressures are likely to remain high. Nevertheless, Bosch anticipates somewhat better business this year. In the first quarter, sales were roughly at the same level as the previous year. For the full year, managers are targeting sales growth of 2-5%.
“For 2026, we expect better results,” said CFO Forschner. “The reasons for this are the absence of one-effects in the last year and the cost-cutting effects starting to show. The CFO foresees a return on sales of 4-6%, up from 2% in 2025.
