Bosch China President Xu Daquan has clarified recent speculation about workforce reductions, stating that adjustments affecting a small number of employees in specific traditional business lines are a normal occurrence during the significant transformation within the automotive industry. He emphasized that the changes, impacting only a few departments, have been misinterpreted as the company initiating widespread layoffs, which is not the case.
According to data from Bosch China, the company employs approximately 57,000 people in China as of December 31, 2025, including over 10,000 research and development staff. The recent personnel adjustments affect only around 200 employees, primarily those working in traditional business segments.
This minor realignment in certain business units is understood to be connected to Bosch Group's overall operational strategy and the prevailing trends in the industry.
The Bosch Group recently released its preliminary financial results for 2025. The report indicates a slight increase in sales to 91 billion euros, up from 90.3 billion euros in 2024, representing a 4.2% growth after adjusting for currency effects. However, the Group's EBIT margin was approximately 2%, falling short of expectations and lower than the 3.5% margin achieved in 2024.
Bosch attributes the subdued performance in the 2025 fiscal year primarily to a weak overall economic environment and increasingly challenging market conditions. Factors such as declining sales volumes leading to narrowed profit margins, rising tariff costs, and significant provisions made for necessary structural adjustments and related personnel measures have placed noticeable pressure on results.
Stefan Hartung, Chairman of the Board of Management of Robert Bosch GmbH, described 2025 as a challenging year. He stated that despite the adverse external conditions, the company is systematically advancing its growth strategy, which requires continuously enhancing its competitiveness. He added that the industry competition is expected to intensify, with substantial market recovery not anticipated until 2027.
Hartung revealed that the Bosch Group is comprehensively optimizing its material cost structure, deepening the application of artificial intelligence to boost production efficiency, and evaluating each investment with greater caution. To safeguard long-term competitiveness and investment capacity, the Group will also further optimize personnel costs and streamline its organizational structure.
In the Chinese market, Bosch Group achieved sales of 149.8 billion yuan in 2025, an increase of 4.9% year-on-year. Xu Daquan noted that Bosch China maintained robust business resilience during the year, with its smart mobility business remaining the core driver of growth.
A representative from Bosch China highlighted the company's focus on the local market, citing examples such as electric axles, smart cockpits, and advanced driver-assistance solutions that are often first developed and applied in China. The rapid pace of product development and iteration by Chinese clients necessitates continuous adaptation and the creation of suitable products, reinforcing China's status as a key growth market for Bosch.
Additionally, it was noted that Bosch's commercial vehicle division is progressing with the construction of a light electric drive system production base in Nanchang and a new steering systems plant in Jinan according to plan. Bosch Home Comfort is also expanding its presence in China by establishing a global R&D center in Wuxi and a compressor manufacturing base in Guangzhou, thereby enhancing its localized industrial footprint.
Xu Daquan expressed optimism regarding Bosch's business development in China, affirming the company's commitment to continued investment. He pointed to several growth areas, including automated driving, electrification, and brake-by-wire technology. From a global perspective, Xu emphasized that Bosch will increase its research and development efforts in China to support its worldwide operations.