Job cuts in German industry continued in 2026 despite the sector posting its first rise in sales in about three years, a study by consultancy EY showed on Monday, with the car industry hit hardest.
Employment at German industrial companies was down by 127,300 jobs, or 2.3%, year-on-year at the end of the first quarter, EY said. Since 2019, the year before the COVID-19 pandemic, the sector has shed 341,500 jobs, a decline of just over 6%, meaning one in 17 industrial jobs has disappeared.
EY said weak sales had driven the latest cuts, although first-quarter data suggested a possible turning point. Industrial sales rose 1.7% from a year earlier, after 10 consecutive quarters of decline.
The improvement was largely due to the metal industry, while most other sectors remained under pressure, EY expert Jan Brorhilker said.
“After three years of continuous declines, this is now cutting into the substance of companies,” Brorhilker said.
The automotive sector has been hit hardest, losing around 125,800 jobs since 2019, including 32,000 over the past year.
Brorhilker warned of further cuts, saying overcapacity, weak domestic demand and difficulties in key export markets could force companies to consider plant closures.