Bosch bracing for 2025 profit slump and tough new year, CEO says

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Home > Finance > Bosch bracing for 2025 profit slump and tough new year, CEO says

Finance

Bosch bracing for 2025 profit slump and tough new year, CEO says

Published by Global Banking and Finance Review

Posted on January 8, 2026

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Tags:corporate profits financial crisis economic growth unemployment rates consumer perception

BERLIN, Jan 8 (Reuters) - German automotive supplier Bosch expects a slump in 2025 earnings with another difficult year ahead as tariffs bite and weak growth weighs on consumer spending, its CEO said in a newspaper interview on Thursday.

Costs from steep tariffs and redundancy packages will continue into 2026, with some 22,000 job cuts planned at Bosch as German suppliers struggle with a slowdown in the domestic auto industry and competition from abroad.

As a result, Bosch expects 2025 earnings before tax to come in significantly below target and be lower than 2024, already a weak year for the supplier, Bosch Chief Executive Stefan Hartung told German newspaper Die Zeit.

"Customers' willingness to pay higher prices is declining," Hartung said.

"In 2026, growth in the U.S. and China will slow down, and the forecasts for Europe and Germany are not good either. All of this will be reflected in our business figures for 2025 and 2026," he said.

Bosch will not reach its long-term target of an operating margin of at least 7% before 2027, he added.

(Reporting by Rachel MoreEditing by Madeline Chambers)

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A financial crisis is a situation where financial institutions or assets suddenly lose a significant part of their value, leading to a loss of confidence and potentially causing economic downturns.

2What is economic growth?

Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured by the rise in Gross Domestic Product (GDP).

3What are unemployment rates?

Unemployment rates measure the percentage of the labor force that is jobless and actively seeking employment. High unemployment rates indicate economic distress.

4What is consumer perception?

Consumer perception refers to the way consumers view and interpret a brand, product, or service, which can influence their purchasing decisions and overall satisfaction.