Why are German industrial companies continuing to cut jobs even though sales rose for the first time in three years?

According to EY, job cuts continued despite a 1.7% year-on-year rise in industrial sales — the first increase after 10 consecutive quarters of decline — because weak sales had driven the latest round of layoffs, and the sales improvement was largely confined to the metal industry while most other sectors remained under pressure; as EY expert Jan Brorhilker stated, 'After three years of continuous declines, this is now cutting into the substance of companies.'

Which sector has been hit hardest by job losses in German industry since 2019, and how many jobs were lost there?

The automotive sector has been hit hardest, losing around 125,800 jobs since 2019, including 32,000 over the past year, according to EY's analysis cited in the news body.

German Industry Keeps Cutting Jobs Despite First Sales Rise in Three Years, EY Says

May 24, 2026

EY study shows German industrial employment dropped 2.3% in Q1 2026 despite a 1.7% sales increase, with the metal sector driving gains while automotive faced significant job losses.

reuters

2026-05-24

German Industry Keeps Cutting Jobs Despite First Sales Rise in Three Years, EY Says

German Industry Keeps Cutting Jobs Despite First Sales Rise in Three Years, EY Says

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