EY: Germany's automotive job cuts hit nearly 52,000 in a year

Germany's industrial sector is shedding jobs at a rapid pace, with the automotive industry hit hardest, an analysis from consulting firm EY, made available to dpa, showed.

The automotive sector cut a net total of around 51,500 positions within one year, almost 7% of the sector's workforce, according to EY.

Overall, industrial employment fell 2.1% to 5.42 million as of June 30, a decline of roughly 114,000 jobs over 12 months, based on data from the Federal Statistical Office.

Since 2019, the workforce has shrunk by about 245,000, or 4.3%.

The downturn comes amid falling industrial revenue, which dropped 2.1% in the second quarter — the eighth consecutive decline. All sectors except electronics reported lower sales, with automakers facing weak demand, competition from China, and the transition to electric vehicles. Revenues in the auto sector dropped by 1.6%.

Germany's industry is also under pressure from high energy costs, bureaucracy, sluggish domestic demand, and trade tensions with the United States. EY noted that US tariffs and slumping exports to China have hit German manufacturers hard.

Major firms including Mercedes-Benz, VW, Bosch, Continental, and ZF have announced cost-cutting programmes, while Porsche plans to largely shut down its battery subsidiary Cellforce.

Job losses extend beyond the automotive sector: machinery and metal production shed 17,000 and 12,000 positions respectively, while the chemical and pharmaceutical sectors remained largely stable.

EY warned the trend is likely to continue, affecting new graduates and young engineers, who will face fewer opportunities. The consultancy noted that German automotive and machinery sectors are hiring significantly fewer young people than in previous years.

"We will see rising unemployment among university graduates—something that hasn’t happened in Germany for a long time," Jan Brorhilker, EY managing partner said.