Azernews.Az

by Alimat Aliyeva

The world’s largest automotive components supplier, the German technology company Bosch, has reported a financial loss for the first time in 17 years, marking a significant turning point for the industrial giant, AzerNEWS reports.

By the end of 2025, Bosch’s net loss reached approximately €400 million, compared to a net profit of €1.3 billion in 2024. The last time the company recorded a loss was during the global financial crisis in 2009.

According to the company, the main driver behind the downturn was the high cost of restructuring, including employee reduction programs that alone amounted to €2.7 billion. Additional pressure came from U.S. tariffs, currency fluctuations, rising production costs, and weaker demand in key markets. Bosch also acknowledged a decline in competitiveness in several segments, while consumers reduced spending on household appliances and power tools amid broader economic uncertainty.

In response, the company has launched a large-scale restructuring plan. Up to 22,000 jobs are expected to be cut in its automotive division, with further reductions planned in its BSH home appliances subsidiary and its power tools business. The restructuring reflects a broader shift in the European manufacturing sector, where companies are increasingly balancing traditional industrial production with the costs of electrification and digital transformation.

Despite the current downturn, Bosch forecasts a recovery beginning in 2026. The company expects revenue growth of 2% to 5% and an increase in operating profit of 4% to 6%, driven by efficiency measures and stronger demand for automotive software and electrified mobility components.

Interestingly, Bosch’s situation highlights a wider trend across Germany’s industrial base: major suppliers are under pressure not only from global competition, but also from the rapid transition to electric vehicles and AI-driven manufacturing systems. While this transition creates long-term opportunities, it is also forcing even the most established players to undergo painful restructuring in the short term.