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.