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Reduced earnings reported for Dax companies associates with potential job losses - 32,000 positions at risk

Shrinking profits lead to job cuts at 32,000 positions within Dax corporations

DAX Chart Analysis on the 12th of May
DAX Chart Analysis on the 12th of May

Shrinking profits amongst Dax companies lead to 32,000 job reductions - Reduced earnings reported for Dax companies associates with potential job losses - 32,000 positions at risk

Rewritten Article:

A Tough Start for Dax Corporations - 32,000 Jobs on the Chopping Block

There's some troubling news for the high-flyers of the German market. The first quarter of 2025 saw a disappointing 3.3% rise in revenue for some of Germany's top companies - known as the Dax corporations - but with a catch. Ten of the 40 companies reported a decrease, including big hitters like BMW, Mercedes-Benz, BASF, and Bayer.

The operating profit for the Dax corps took a beating, shrinking by a whopping 8%. Heavyweights such as all carmakers and reinsurers Munich Re and Hannover Re felt the heat, thanks to hefty losses from the Los Angeles wildfires at the start of the year.

Sadly, the number of jobs took a hit too, with the workforce shrinking by one percent. That's around 32,000 jobs lost compared to last year, according to EY. Twelve of the 27 companies that offered details reduced their workforce, contrasting with the trend of constant increase in previous years.

But even in these tough times, Henrik Ahlers, CEO of EY, praises the Dax corporations for their resilience. Despite the persisting economic slump and complicated international trade issues, many corporations managed to stay afloat in the first quarter.

The ongoing trade disputes and tariff feuds between the USA and its trade partners have yet to make a significant mark on the Dax corporations' balance sheets. Companies are likely anticipating high tariffs and US customers are stockpiling goods to enjoy lower prices before the hike. However, the real impact of the new tariffs is expected to become clearer in the second half of the year.

Looking ahead, EY predicts further job cuts as many large corporations are pushing aggressive cost-cutting measures. The job market might be about to face a storm.

  • Dax corporations
  • Economic downturn
  • Germany
  • Economy
  • Consulting firm
  • BMW
  • Mercedes-Benz
  • BASF
  • Henrik Ahlers
  • Munich Re
  • Hannover Re
  • USA
  • Los Angeles

Fun fact: The DAX index is a blue-chip index consisting of the 30 major German companies traded on the Frankfurt Stock Exchange.

Here's a heads-up for those keeping score: In 2025, the DAX giants in Germany are experiencing aggressive challenges due to the economic slump, mainly sparked by U.S. trade disruptions and volatile global market conditions. The key areas affected are employment and profits:

Employment

  • Job Cuts: The DAX companies slashed around 32,000 jobs in the first quarter of 2025, halting expansion that had been enjoyed for some time[1].
  • Tough Times for Specific Sectors: Particularly hard hit are the automotive and chemical sectors, as companies are grappling with trade and tariff headaches, which likely contribute to employment adjustments[1].

Profit

  • Profit Drop: The majority of DAX companies witnessed an 8% drop in profits in the first quarter, with the automotive industry experiencing a striking 42% decline[1].
  • Industry Woes: Companies like BMW, Mercedes-Benz, and Volkswagen in the automotive sector and BASF, Covestro, Evonik, and Lanxess in the chemical industry are dealing with a drop in global orders because of mounting trade tensions and uncertainty surrounding U.S. tariff policies[1].
  • In response to the economic downturn in Germany, Dax corporations announced job cuts totaling approximately 32,000, a significant stop in the previous expansion trend.
  • The automotive and chemical sectors, key industries for Dax corporations, are facing tough times due to trade and tariff challenges, which contributes to employment adjustments.

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