Technology group
After the drop in profits: What is Bosch?
The growth at Bosch was more difficult recently. A similar feature does not succeed in 2024. The Swabians clearly feel the economic situation. What threatens the group and its employees?
After the drop in profits last year, the auto supplier and technology group Bosch does not expect a rapid recovery – and wants to save billions. “I expect that 2025 will be an exhausting year,” said CEO Stefan Hartung. One is properly set up. But the goals for the past year had been held back – and it was worse. “That’s why we are more careful now”.
Profit breaks up by a third
For good reason: The difficult economic situation in 2024 beat Bosch with full force. According to preliminary figures, the profit broke in front of interest and taxes (EBIT) by a third to 3.2 billion euros. Sales fell by one percent to 90.5 billion euros. The company, based in Gerlingen near Stuttgart, originally wanted to grow by five to seven percent. Bosch was also more optimistic for the profit.
“Despite all efforts, we (…) could not avoid the economic realities,” said Hartung. You are not satisfied. There are some reasons for the location: The world’s largest car supplier suffers from the low demand for vehicles – especially for electric cars. In addition, numerous consumers still hold back when buying devices such as cordless screwdrivers, washing machines and refrigerators.
The situation was similar with the other Bosch level legs: mechanical engineering struggles with the weak economy, many investments from companies are out. And the European heating market loaded the area for building technology. The result shows how great the uncertainty is among customers and consumers, said Hartung. “It is unusual that there is a lack of noteworthy impulses in all of our sectors.” After all, no one of the four business areas has written red numbers.
To the finish line in 2026, billions are missing
But what’s next? Adverse framework conditions and the delays in future fields such as e-mobility could take some time. Other uncertainty factors are the renewed US presidency of Donald Trump and the Bundestag election. The important numbers should develop better in the current year. A forecast is expected in May. Then Bosch also presents the complete and certified year.
The Bosch manager’s view is already aimed at 2026. In terms of sales, the group wants to make at least twice as much profit as 2024. “A decent billion-dollar amount” is necessary to close this gap, said Hartung. That is difficult, but within reach. “And I mean, if it is within reach, then you shouldn’t give it up.”
Swabian virtue becomes important: saving
The financial balancing act of the Bosch leadership is peaking up: the group is currently reinventing its business radically radically and invests billions in e-mobility, hydrogen, chips and in the heating and air conditioning business. Until these decisions pay off, it should still pass for some time. The cost of the company is therefore currently in the focus of the company.
Bosch in 2026 again expects a slight economic recovery. Sales should also increase. But without austerity programs, the goal will not be achieved: “Saving and investing ensure the necessary scope for action,” said CFO Markus Researcher. That will not be easy, require great efforts – and also do not rule out painful decisions. For example, this could be a further job cut. Most recently, such plans had always become known.
Hartung: “Nobody likes to build up jobs”
By the end of 2032, more than 12,000 Bosch jobs could be omitted worldwide. So far, a good 7,000 jobs have been affected in Germany. “Nobody likes to dismantle positions,” emphasized Hartung. But you have to set yourself up to the future. “Unfortunately, this goal cannot be achieved in view of the current market situation and the intensified competitive pressure without effective adjustments and without clear prioritization.” Therefore, in certain cases it is still possible that jobs would have to be dismantled.
This is already evident in the current number of employment. At the end of 2024, Bosch had 417,900 employees worldwide – and thus 11,500 fewer than a year earlier. In Germany, the number of employees fell by 4,400 to 129,800 (minus 3.3 percent).
Bosch: E-mobility & Co.
In the medium term, Bosch remains confident. “Our basic orientation remains the same,” said Hartung. Electromobility, hydrogen and other sustainable technologies remained growth transactions. “You will come, and you have to come in view of the unchanged urgent climate change.” The technical solutions would be ready. However, the dynamic will not develop immediately, but probably only in the medium perspective.
dpa
Source: Stern
