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Germany's Auto Industry Faces 51,500 Job Cuts Amid Global Challenges

The automotive industry's job cuts have hit Germany hard, with nearly half of the 114,000 industrial job losses in the past year occurring in this sector. Can the industry and government work together to mitigate the impact on workers?

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This is a presentation and here we can see vehicles on the road and we can see some text written.
This is a presentation and here we can see vehicles on the road and we can see some text written.

Germany's Auto Industry Faces 51,500 Job Cuts Amid Global Challenges

Germany's automotive industry is facing significant job cuts, with around 51,500 positions lost in the past year. This represents a 6.7% decrease in the sector's total workforce. The industry is grappling with a challenging global market, high competition, and technology shifts, leading to cost-cutting programs and layoffs, particularly in Germany.

The automotive machinery and mechanical engineering sector has also seen a decline in hiring young people, indicating a potential skills gap in the future. The rate of job losses has nearly doubled since before the Covid-19 pandemic, highlighting the industry's ongoing struggles. Exports to key markets like the US and China have also fallen, with new tariffs and reduced demand contributing to the downturn. EY predicts that job losses will continue as companies restructure and implement cost-cutting plans. In the second quarter of 2025, the turnover of German industrial companies fell by 2.1%, with car companies' revenues dropping by 1.6%.

Leading German automakers and suppliers such as Mercedes-Benz, Volkswagen, Audi, Bosch, Continental, ZF, and Porsche have initiated cost-cutting programs. These companies are facing profitability pressure due to expensive investments, structural changes, and high labor costs in Germany. The cuts aim to balance future investments with sustainable cost structures and address overcapacities in the country.

The automotive industry's job losses have significantly impacted Germany, with nearly half of the 114,000 industrial job losses in the same period occurring in this sector. As the industry continues to face challenges and implement cost-cutting measures, the German government and companies must work together to mitigate the impact on workers and support the industry's long-term competitiveness.

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