Bajaj Auto’s Strategic Restructuring: Aims to Enhance Efficiency and Reduce Costs
Bajaj Auto, one of India’s leading automobile manufacturers, has announced a significant restructuring plan that involves laying off around 500 employees. This move is predominantly aimed at reducing the company’s fixed costs and streamlining its operations. The layoffs will mainly affect salaried positions and middle management levels.
The decision to downsize the workforce is part of an efficiency program initiated by the company to place itself on a stable footing for the long term. As of December 31, 2025, Bajaj Auto’s headcount stands at 3,794 employees, which is a significant reduction from the 5,310 employees it had in the previous year.
Focus on Product and Project Portfolio
According to the company, the focus will now be more on the product and project portfolio, along with optimizing the international site and leadership network. This strategic shift is expected to enhance the company’s competitiveness in the global market and drive growth in the long run.
CEO Gottfried Neumeister stated, ‘This reduction in positions is a difficult but necessary decision to lower our costs, slim down structures, and thereby place the company on a stable footing for the long term. We are reducing complexity across all areas—for example in our model range, in IT, and also in the organisation of our departments, particularly by removing one management layer.’
Impact on the Automobile Sector
The layoffs at Bajaj Auto are a significant development in the Indian automobile sector, which has been facing challenges in recent times. The sector has been impacted by factors such as slowdown in demand, increasing competition, and regulatory changes.
However, the restructuring plan announced by Bajaj Auto is expected to have a positive impact on the company’s financials and operations in the long run. The company’s focus on enhancing efficiency and reducing costs is likely to make it more competitive in the market and drive growth.
Preliminary Figures for the Bajaj Mobility Group
The preliminary figures for the Bajaj Mobility Group for the 2025 fiscal year are expected to be published on January 29, 2026. The company expects consolidated sales for the past fiscal year to be just over EUR 1 billion, marking a reduction of approximately 46% compared to the previous year.
The Bajaj Mobility Group sold 80,464 motorcycles in the second half of 2025, representing a 60% increase on the first half of the year. In addition, 43,956 motorcycles were sold in H2 via strategic partner Bajaj Auto. The group’s motorcycle sales in fiscal year 2025 totalled 209,704 units, a decline of 28%.
Inventory Reduction and Closure of Bicycle Division
The company has also reduced its motorcycle inventory from 101,153 units to 147,427 units. As part of the closure of the bicycle division, 64,110 e-bicycles and bicycles were sold, compared to 106,311 units in the previous year.
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