German industrial companies eliminated over 124,000 jobs in 2025, a drop of 2.3% compared to the previous year, according to an EY analysis. The automotive sector was hit hardest, losing around 50,000 positions, driven by shrinking revenues and weak orders.
Why it matters
The significant job losses signal a deep crisis in German industry, with EY suggesting further cuts are likely unless a substantial economic upswing occurs, potentially impacting regions heavily reliant on the auto sector.
Key points
Key points
- The job cuts in 2025 were nearly double the number recorded in 2024.
- The automotive industry lost approximately 50,000 jobs, representing a 6.5% reduction in that sector's employment.
- The chemical and pharmaceutical industries experienced a minor decrease of about 2,000 jobs.
- Since 2019 (pre-Corona year), industrial employment in Germany has fallen by about 266,000 jobs.
- EY Managing Partner Jan Brorhilker noted that domestic sales fell more sharply than exports, citing a lack of confidence in economic recovery.
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