Global automotive supplier Bosch announced on Friday that its operating profit fall by nearly half in 2025 and postponed its profitability target by a year, to 2027.

Bosch‘s operating profit plummeted 45% year-on-year to €1.7 billion, compared to €3.1 billion in 2024, according to a press release.

This figure is even lower than that achieved in 2020, a year in which the group’s results were severely impacted by the COVID-19 pandemic.

The operating margin thus decreased by nearly half to 1.9%, below the expectations of the Gerlingen-based group (southern Germany).

Sales, meanwhile, increased slightly by 0.8% to €91 billion.

“Despite some positive developments, 2025 was generally a difficult and sometimes painful year,” lamented Bosch CEO Stefan Hartung, adding that the “economic reality” was reflected in the group’s figures. Bosch also sells industrial equipment, household appliances, and smart building technologies.

According to the group’s CFO, Markus Forschner, “low sales, unfavorable exchange rate effects, and higher tariffs” were the main factors weighing down performance last year.

No significant improvement is expected this year, so Bosch now estimates that its 7% operating margin target will be reached “at the earliest in 2027, instead of 2026.”

By the end of 2027, Bosch plans to invest €2.5 billion in artificial intelligence, particularly in “software-driven mobility,” the company’s main revenue stream.

It must also reduce its costs, especially in the “mobility” division, the main target of a plan to cut 13,000 jobs in Germany by 2030, as announced in September.

These cuts represent more than 3% of the group’s global workforce, which employed 412,400 people at the end of 2025.

“To ensure our long-term competitiveness and investment capacity, we must reduce our personnel costs and significantly streamline our organization,” Hartung stated.

Acknowledging the human impact of these decisions, he said he hoped he would not have to announce such large-scale job cuts again in the coming years.