Bosch, the world's largest auto parts supplier, is in desperate straits: may need to continue layoffs to reduce costs, and the 7% profit margin target has been postponed to 2027.

German automotive parts supplier Robert Bosch GmbH expects its main markets to see significant improvement only next year, exacerbating cost pressures. Prior to this, cost pressures had already led to a wave of layoffs at the company. Bosch announced its annual performance for 2025 on Friday, stating that as a result of weak demand and high costs, it will not achieve its 7% profit margin target until at least 2027. The company, which manufactures drive system components and power tools, stated that early signs of a global economic slowdown will exacerbate the impact of tariffs, thus increasing price pressures. In recent years, Bosch has repeatedly postponed its profit margin targets. Bosch CEO Stefan Hartung told reporters, "The goal remains the same - it's just that the goal is always moving." This suggests that Bosch may need to accelerate workforce reductions beyond the 13,000 job cuts announced last year. In a statement, Bosch said that in the long run, ensuring competitiveness and investment capability means, "we need to take more measures to reduce personnel costs and streamline organizational structure." Competition from Chinese rivals and software companies is intensifying, squeezing the survival space of traditional automotive suppliers. At the same time, automakers are developing more technology independently, weakening their bargaining power. The German automotive industry has responded to this by triggering a wave of layoffs. Bosch has led the wave of layoffs among suppliers, planning to cut a total of 18,500 positions. This includes the 13,000 layoffs announced in September in its Mobility Solutions division, but Bosch stated that there will be no operational layoffs at German factories before the end of 2027. Currently, Bosch is negotiating with labor representatives on social responsibility measures. Bosch stated that its pre-tax profit margin dropped from 3.5% in 2024 to around 2% last year, lower than expected. Revenue grew slightly by 0.8% to 91 billion euros (109 billion US dollars), mainly dragged down by declining business in its largest market, Europe. Pressure on performance is being caused by factors such as the weak dollar, tariffs, and exchange rates, as well as increasing competition, weak demand from automakers, and restructuring costs. Hartung said, "Finding a socially acceptable solution is not easy." He declined to comment on further layoffs. "We hope that we will not have to take such large-scale measures in the coming years."