Analysis: German industry cut 124,000 jobs in 2025

Germany’s industrial sector cut around 124,000 jobs in 2025 as the economy struggles, according to an analysis by consulting firm EY seen by dpa.

The study, which is based on data from the Federal Statistical Office and covers companies with at least 50 employees, shows that industrial employment fell 2.3% to about 5.38 million last year. This was nearly double the decline in 2024.

The automotive industry was hardest hit, shedding around 50,000 positions, while the chemical and pharmaceutical sectors lost roughly 2,000 jobs.

German industry is in a deep crisis, said Jan Brorhilker, EY managing partner. Industrial revenues have shrunk nearly 5% since 2023, he added, noting that a strong recovery would be needed to stop further job losses.

Industrial revenue declined 1.1% in 2025, with the fourth quarter of 2025 marking the 10th consecutive quarter of contraction. The automotive, paper and textile sectors saw revenue drops, while metal and electrical engineering recorded growth.

Since 2019, before the pandemic, industrial employment has fallen by about 266,000, or around 5%. The automotive sector alone has lost 111,000 jobs since then, a 13% drop.

Employment in the textile and metal industries fell 16% and 13%, respectively, while the chemical, pharmaceutical and electrical sectors saw modest employment growth of 3% and 2%.

EY said the job losses in 2025, though severe, remain moderate compared with the potential impact if economic conditions do not improve.

EY expects industrial job cuts to continue this year due to weak orders and intense competition. The number of bankruptcies, particularly among automotive suppliers, is also rising, Brorhilker said.

Carmakers are increasingly shifting production as well as research and development abroad, which comes at the expense of jobs in Germany, he added.

Economists expect Germany’s economy to grow by around 1% in 2026 after years of stagnation. But it will take time for that growth to be felt in companies. A broad-based recovery is not expected until 2027, when the full effects of government spending on defence and infrastructure investments are projected to materialize.