Skip to content
Manufacturing — Industry — Finance — Lifestyle — Investing — Cyber Tech Business Solutions — Revolutionizing Tech at Cyber Tech Hub — Cars

German Industry Slumps in Q2 2025: Turnover Drops, Jobs Lost

Turnover drops by 2.1% as automotive sector struggles. Nearly 114,000 jobs lost, with major companies implementing cost-cutting programs.

,   and  Administrator
2 min read
This is a presentation and here we can see vehicles on the road and we can see some text written.
This is a presentation and here we can see vehicles on the road and we can see some text written.

German Industry Slumps in Q2 2025: Turnover Drops, Jobs Lost

German industrial companies have faced a challenging quarter, with a significant drop in turnover and a wave of job losses, particularly in the automotive sector. The electronics industry was the sole bright spot, bucking the trend with improved turnover.

The second quarter of 2025 saw a 2.1% decrease in turnover for German industrial companies, more than seven times the overall negative growth rate of 0.3%. This downturn was largely driven by the automotive industry, which experienced a 1.6% fall in revenues. Exports to key markets like the US and China also plummeted, with tariffs and a sharp decline in demand contributing to the slump.

The job market has not been spared from the industry's struggles. According to a study by accounting firm EY, nearly 114,000 industrial jobs were lost in the same period, with the automotive industry accounting for nearly half of these losses. This represents a significant increase from the pre-pandemic rate. Large companies such as Mercedes-Benz, Volkswagen, Audi, Bosch, Continental, ZF, and Porsche have initiated cost-cutting programs, often starting with job cuts. Stefan Grosch, Bosch's CEO and Labor Director, is leading these efforts, planning to reduce around 13,000 jobs mainly at Mobility division sites in Germany. The automotive industry's struggles are not limited to Germany, with Volvo's CEO also emphasizing the need for cost reduction to adapt to the current climate.

The German industrial sector's challenges are expected to continue, with EY predicting further job losses and rising unemployment among university graduates. The electronics industry's resilience offers a glimmer of hope, but the automotive sector's struggles and the decline in exports to key markets paint a bleak picture for the coming months. As companies like Bosch and Volvo implement cost-cutting measures, the industry and the government must work together to mitigate the impact on employment and support the sector's recovery.

Read also:

Related

Latest