02/17/2026, 07:1302/17/2026, 07:13
During the economic crisis, German industry cut jobs on a large scale in 2025. At the end of last year, around 5.38 million people worked there – a good 124,000 or 2.3 percent fewer than the previous year.
The German automotive industry was hit hardest by the economic crisis. (symbol image)Image: KEYSTONE
This is shown by an analysis by the consulting firm EY, which is available to the German Press Agency. The job cuts in industry were almost twice as high as in 2024, according to the study, which is based on data from the Federal Statistical Office and covers companies with at least 50 employees.
The hardest hit in 2025 was the ailing automotive industry, where around 50,000 jobs were lost alone, while the chemical and pharmaceutical industries got off lightly with a loss of around 2,000 jobs.
Before Corona year 2019, the number of employees at EY fell by around 266,000.Image: sda
“German industry is in a deep crisis,” said Jan Brorhilker, Managing Partner at EY. Since 2023, industrial sales have shrunk by almost five percent. The job cuts are therefore still moderate. But one thing is clear: “It would take a real and significant upswing to prevent a further decline in employment.”
Two industries are growing against the trend
According to the study, industry sales fell by 1.1 percent last year alone, and the fourth quarter of 2025 was the tenth consecutive year of declines. While the automotive, paper and textile industries in particular lost sales, the metal and electrical engineering industries increased.
In the medium term, job cuts in industry will be even greater than in 2025. Since the pre-Corona year of 2019, the number of employees has fallen by around 266,000 – according to EY, a decline of almost five percent. Since then, employment in the automotive industry has shrunk by 13 percent or 111,000 people.
There were also significant job cuts in the textile industry with minus 16 percent and the metal industry with minus 13 percent. In contrast, employment in the chemical and pharmaceutical industries has grown by three percent since 2019 and in the electrical industry by two percent.
Further job cuts expected in 2026
The bottom line is that the industry is likely to continue to cut jobs this year due to weak orders and high competitive pressure, believes EY. Added to this is the increasing number of bankruptcies, especially among automotive suppliers, says Brorhilker. Car companies are also increasing production, research and development abroad – “this is at the expense of jobs in Germany”.
Economists expected the German economy to grow by around one percent again in 2026 after years of slump. But it will take time for this to be reflected in the companies. Economists do not expect a broad upswing until 2027, when the government’s billions in spending on armaments and infrastructure have their full effect. (sda/dpa)