Bosch Warns of Sub-2% Profit Margin in 2025, Plans 13,000 Layoffs to Tackle Losses

According to Germany's Manager Magazin, Bosch Group CEO Stefan Hartung acknowledged in an internal memo that the company expects sales of approximately €91 billion in 2025—slightly higher than the €90 billion recorded in 2024. However, excluding the impact of the acquisition of Johnson Controls-Hitachi Air Conditioning (valued at €7.4 billion), underlying revenue actually declined. More concerning is that the full-year profit margin will fall below 2%, far short of the company’s long-term target. Weighed down by tariffs and restructuring costs, Bosch’s Mobility Solutions business continues to incur annual losses of around €2.5 billion. To address this situation, the company plans to cut 13,000 jobs (3% of its global workforce) in its automotive components division, primarily in Germany, with layoffs continuing through 2030. Bosch will officially release its 2025 financial results on January 30.