A recent report by EY has highlighted a concerning trend in the German industrial sector, projecting a loss of over 120,000 jobs by the end of 2025. This decline primarily impacts larger companies with a minimum of 50 employees, as indicated by data from the Federal Statistical Office. The automotive industry, in particular, is facing significant challenges, with estimates suggesting the elimination of over 50,000 jobs within this sector alone.

The crisis in German manufacturing has been exacerbated by a steady decline in revenues, which have fallen nearly 5% since 2023. Ey experts emphasize that without a clear economic rebound, the trend of job cuts is likely to continue, posing a significant threat to the workforce. In contrast, while the chemical and pharmaceutical industries are experiencing fewer losses, they are still not immune, having also seen approximately 2,000 jobs cut.

Jan Brorhilker, a partner at EY, described the current state of German industry as being in deep crisis. The implications of this crisis are broad, as widespread job losses not only affect those directly employed but also ripple through the economy, potentially leading to decreased consumer spending and increased social strain. Thus, addressing the underlying issues that have led to this downturn is crucial for the recovery of one of Europe's largest economies.