Germany’s industrial workforce is shrinking at a fast pace, with the automobile sector taking the heaviest hit, according to new data compiled by EY using government figures.
In the second quarter of 2025, industrial companies recorded a 2.1% fall in revenues compared with last year, sliding to about €533 billion.
Employment also dropped by the same rate during this period. Since 2019, nearly 245,500 industrial jobs have disappeared, equal to more than 4% of the sector’s workforce.
The car industry is under the most pressure. Around 51,500 jobs were lost within a year, equal to almost 7% of total auto employment.
German carmakers such as Volkswagen, Mercedes-Benz, and Audi are cutting costs in response to weak global demand, excess capacity, and expensive transitions to electric vehicles.
Export markets have turned weaker. Sales to the United States fell by 10% in the last quarter, while deliveries to China dropped 14%.
Both countries are central to German trade, but tariffs, changing consumer habits, and rising local competition have pushed exports down.
The slowdown is not limited to cars. Across industrial activity, revenues are falling and jobs are being cut, although electronics have managed to see some growth.
At the same time, firms like Porsche are scaling back projects, including plans to build their own batteries, due to declining EV demand.
The German government has announced tax relief and infrastructure investments in an attempt to restore confidence, but businesses remain cautious.
Analysts expect the trend of restructuring and workforce reduction to continue in the coming months.