Bosch recently reported a significant decrease in profits, with a one-third drop in earnings before interest and taxes, bringing the total to 3.2 billion euros.
The company’s revenue also slightly decreased to 90.5 billion euros. Originally, Bosch aimed for a growth in both revenue and profits, but the difficult economic conditions of 2024 hit the company harder than expected. Stefan Hartung, the CEO, stated that despite the company’s efforts, they couldn’t escape the economic realities.
A few factors contributed to this downturn, including a reduced demand for vehicles, particularly electric cars, and consumer reluctance to purchase items like power tools and home appliances. Moreover, the manufacturing sector is struggling with economic challenges, and European heating technology sales are similarly affected.
The way forward remains uncertain for Bosch. Anticipation is high for improved figures in the current year, with a formal forecast expected in May. Bosch aims to double its profits by 2026 compared to 2024. The company is focusing on investments in electric mobility, hydrogen, semiconductor technologies, and climate-friendly heating and cooling technologies, though the returns from these investments will take time.
Bosch is counting on a slight economic recovery by 2026, but cost-cutting will be crucial to achieving its targets. According to CFO Markus Forschner, this might involve job cuts, with the possibility of 12,000 positions being eliminated by the end of 2032. In 2024, Bosch’s global workforce stood at 417,900, a decrease of 11,500 from the previous year.
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