Jobs in the German automotive industry are disappearing faster than in any other industrial sector, according to reports citing experts.
By the end of the first half of 2026, the German automotive industry, considered a key sector in Germany, employed 691 500 people. According to the Federal Statistical Office (Destatis), this represents the lowest figure since comparable records began in 2005. This current figure reflects a decline of 42 300 employees (or 5.8 per cent) over the course of a year. However, a similar trend is evident in other industrial sectors, albeit at a slower pace. Across the manufacturing sector as a whole, approximately 144 000 jobs were lost over the same 12-month period, with the total workforce shrinking by 2.7 per cent to 5.29 million.
A worrying decline. This image could soon become a glimpse into the good old days – for the German automotive industry is still struggling. What’s more, experts are now warning that jobs are disappearing faster in this sector than anywhere else
Auto suppliers hit particularly hard
Since 2019, the year before the coronavirus pandemic, the automotive industry has lost 16 per cent of its workforce (142 400 jobs), according to the latest “Industry Barometer” from the consultancy firm EY. Many companies are far from completing their restructuring efforts. Faced with high labour costs, sluggish productivity growth, and intensifying international competition, many are planning to step up job cuts in Germany even further. Nevertheless, the automotive sector remains Germany’s second-largest industrial branch, trailing only mechanical engineering, which employs 905 900 people. Suppliers have been hit particularly hard, with a 7.6 per cent reduction in jobs, whereas the manufacturers themselves lost ‘only’ 6.1 per cent.
Layoffs, layoffs, and job losses
The figures from Destatis do not yet account for the latest job-cut plans announced by major German automakers. BMW recently announced the elimination of around 8 000 jobs worldwide. Yet, compared to other groups, that figure is relatively modest. The VW Group, which includes Porsche and Audi, is currently grappling with plans that could effectively double the 50 000 job cuts already underway. Mercedes-Benz has also eliminated thousands of positions. Meanwhile, Bosch intends to cut up to 22 000 jobs globally in its supplier division, and ZF plans to cut 14 000 jobs in Germany alone. EY analysts project that the German automotive industry will shrink to 500 000 jobs or fewer by 2030, assuming no improvements occur. And the automotive sector is merely the tip of the iceberg, with many other industries facing similar challenges beneath the surface.
