Bajaj Auto to Lay Off 500 Employees in Restructuring Effort
Bajaj Auto, one of India’s leading automobile manufacturers, has announced a significant restructuring plan that includes the layoff of around 500 employees. The company stated that the layoffs will primarily affect salaried positions and middle management, and are part of an effort to reduce fixed costs and streamline structures.
The headcount at Bajaj Auto currently stands at 3,794 employees, as of December 31, 2025, compared to 5,310 employees in the previous year. This reduction in workforce is attributed to an efficiency program aimed at optimizing the company’s product and project portfolio, as well as its international site and leadership network.
Reasons Behind the Restructuring
According to Bajaj Auto’s CEO, Gottfried Neumeister, the decision to lay off employees was a difficult but necessary one, aimed at lowering costs and placing the company on a stable footing for the long term. The company is reducing complexity across all areas, including its model range, IT, and organizational structure, by removing one management layer.
The restructuring effort is focused on the motorcycles segment, with a clear emphasis on the three core brands: KTM, GASGAS, and Husqvarna. The company has reported that all measures are being taken with a focus on these brands, and that the preliminary figures for the Bajaj Mobility Group for the 2025 fiscal year will be published on January 29, 2026.
Impact on Sales and Revenue
Bajaj Mobility expects consolidated sales for the past fiscal year 2025 to be just over EUR 1 billion, marking a reduction of approximately 46% compared to the previous year. However, the company has reported a significant increase in motorcycle sales in the second half of 2025, with 80,464 units sold, representing a 60% increase over the first half of the year.
In addition, the company has reported that 43,956 motorcycles were sold in the second half of 2025 via its strategic partner, Bajaj Auto. The group’s motorcycle sales in fiscal year 2025 totaled 209,704 units, a decline of 28% compared to the previous year.
Inventory Reduction and Bicycle Division Closure
The company has also reported a significant reduction in motorcycle inventory, from 101,153 units as of December 31, 2024, to 147,427 units as of December 31, 2025. Furthermore, the company has announced the closure of its bicycle division, with 64,110 e-bicycles and bicycles sold in the past year, compared to 106,311 units in the previous year.
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