Bajaj Auto Slashes 500 Jobs in Efficiency Drive
Overview
Bajaj Auto is laying off approximately 500 employees, predominantly from salaried and middle management roles, as part of an aggressive efficiency program. The move aims to reduce fixed costs, streamline organizational structures, and simplify operations to ensure long-term financial stability. This strategic decision primarily targets the optimization of the motorcycle segment.
Stocks Mentioned
Bajaj Auto is shedding approximately 500 jobs, primarily affecting salaried employees and middle management, the company disclosed in a regulatory filing Wednesday. This significant workforce reduction is a core component of an aggressive efficiency program designed to slash fixed costs and streamline organizational structures.
The manufacturer's headcount stood at 3,794 employees as of December 31, 2025, a decrease from 5,310 employees the previous year. Company leadership stated this move is necessary to place Bajaj Auto on a stable long-term footing by reducing complexity across various functions, including its product range, IT systems, and departmental organization.
Strategic Streamlining
CEO Gottfried Neumeister emphasized that the decision, while difficult, is essential for cost reduction and structural simplification. The company is actively working to reduce complexity across its model range, IT infrastructure, and organizational departments, notably by eliminating a management layer. This initiative is heavily focused on the motorcycle segment, targeting the core brands KTM, GASGAS, and Husqvarna.
Financial Outlook and Performance
Preliminary figures for the Bajaj Mobility Group for the fiscal year 2025 anticipate consolidated sales exceeding EUR 1 billion. This projection represents a substantial reduction of approximately 46% compared to the prior year. Motorcycle sales within the group saw a notable 60% increase in the second half of 2025 over the first half, with 80,464 units sold in H2 (versus 50,334 in H1). Additionally, strategic partner Bajaj Auto sold 43,956 motorcycles in H2 through the group.
Total group motorcycle sales for fiscal year 2025 reached 209,704 units, marking a 28% decrease year-over-year. Motorcycle inventory has also been significantly reduced, standing at 101,153 units as of December 31, 2025, down from 248,580 units on December 31, 2024. The closure of the bicycle division contributed to sales of 64,110 e-bicycles and bicycles, compared to 106,311 in the previous year.
