Whalesbook
Workforce Reduction and Restructuring at Bajaj Mobility AG
Bajaj Mobility AG, formerly known as PIERER Mobility AG, has announced a substantial workforce reduction, impacting approximately 500 employees. The layoffs are predominantly affecting salaried positions and middle management. This decision is a core component of a broader efficiency program aimed at reducing fixed costs, streamlining organizational structures, and optimizing the international network. The company reported a total headcount of 3,794 employees as of December 31, 2025, a decrease from 5,310 employees a year prior. CEO Gottfried Neumeister emphasized that these are difficult but necessary steps to ensure the company's long-term stability by reducing complexity across various operational areas, including management layers.
Financial Performance and Sales Trends
The restructuring is driven by a significant downturn in financial performance. Bajaj Mobility AG anticipates consolidated sales for fiscal year 2025 to be just over EUR 1 billion, marking an approximate 46% reduction compared to the previous year. Motorcycle sales for the group in 2025 totaled 209,704 units, a 28% decline year-on-year. However, the company noted a positive trend with a 60% increase in motorcycle sales in the second half of 2025 compared to the first half. Additionally, the bicycle division closure resulted in the sale of 64,110 e-bicycles and bicycles. A key milestone in the restructuring has been the reduction of motorcycle inventory by over 100,000 units, from 248,580 units at the end of 2024 to 147,427 units by the close of 2025.
Strategic Shift and Market Context
The company officially completed its rebranding from PIERER Mobility AG to Bajaj Mobility AG on January 13, 2026, following Bajaj Auto's acquisition of a majority stake. All restructuring efforts are sharply focused on the core motorcycle segment, including the brands KTM, GASGAS, and Husqvarna. Concurrently, the company has closed its bicycle division entirely. While Bajaj Mobility AG faces financial headwinds, the broader Indian motorcycle market showed resilience in 2025, with overall sales growing by 3.5% to 20.7 million units, driven by strong consumer demand. The premium and electric motorcycle segments, in particular, are experiencing robust growth. Bajaj Auto itself reported solid financial results in its recent quarters, with Q3 FY24-25 revenue from operations at ₹13,168.88 crore and profit after tax at ₹2,195.65 crore.
Market Snapshot: Bajaj Auto (BAJAJ-AUTO)
As of January 22, 2026, Bajaj Auto Ltd. (BAJAJ-AUTO) is trading around the ₹9,179.00 to ₹9,288.00 mark. The company's market capitalization stands at approximately ₹2.56-2.57 trillion. The trailing twelve months (TTM) Price-to-Earnings (P/E) ratio is approximately 30.8. Daily trading volume has varied, with figures around 198,000 to 323,000 shares.