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German Job Market: A Spring Slump or a Sign of things to Come?
Table of Contents
Is the German economic engine sputtering? This spring, the German job market isn’t exactly blooming. In fact, the F.A.Z. job radar indicates planned job cuts totaling nearly 38,000 in the first quarter alone. That’s the largest number of announced job cuts in a first quarter since 2020. While there are some new positions being created – almost 23,700 – the overall picture is undeniably concerning.
The Automotive Industry: Leading the Downturn
The automotive industry is bearing the brunt of these job cuts. roughly a quarter of the companies planning staff reductions, according to the job radar, are in the automotive and supplier industries. A survey by consulting firm Horváth reveals that 68% of automakers and auto suppliers are planning layoffs, including socially responsible terminations. Across all sectors, 44% of companies are considering short-time work (Kurzarbeit). This data comes from a late March survey of 200 executives from German-based companies with at least 200 employees and €200 million in revenue, primarily in manufacturing, logistics, or transport.
Regional Impact: Southern Germany Hit Hardest
According to study leader Patrick Heurich,the outlook is particularly bleak in Southern Germany,home to many medium-sized manufacturing companies,especially in mechanical engineering and the automotive industry. While the automotive industry primarily aims to cut personnel in production, the logistics sector is focusing on savings in administration.
Horváth partner Heurich notes that companies are mainly reacting operationally to the situation by cutting costs for personnel or materials. He argues that opportunities for strategic realignments,such as portfolio adjustments or market repositioning,are being missed. He emphasizes that lasting business success cannot be achieved solely through cost-cutting measures.
Continental: A Case Study in Restructuring
The crisis facing German automotive brands is also impacting their suppliers.Such as, automotive supplier Continental has been undergoing a profound restructuring for some time, involving important job cuts. The previously announced reduction of 7,150 jobs has already been more than 80% implemented as of March.Together, Continental announced a further international reduction of 3,000 jobs in March, affecting research and growth, with 1,450 of those cuts in Germany.
The Paradox: Job Cuts Amidst a Skilled Labor Shortage
Contitech, Continental’s plastics division, also plans to close five plants in Germany due to weak demand from the automotive industry, potentially affecting 580 jobs. In April, Continental announced plans to spin off Contitech, with its 39,000 employees, by 2026, most likely through a sale. This is part of a larger plan to separate the Automotive division (92,000 employees) as well, with an IPO planned for September 2025. These transactions aim to create three self-reliant companies from the Automotive, tires, and contitech divisions.
How can widespread job cuts coexist with a shortage of skilled workers? According to consultant Heurich, “Companies that are cutting jobs are still affected by the shortage of skilled workers as they are simultaneously looking for new employees to build up other business areas or implement new technologies.”
The Horváth survey indicates that 24% of companies consider the shortage of skilled workers a problem. Heurich suggests that internal retraining can onyl partially mitigate job cuts and fill the skills gap. However, engineers who see no future in the automotive industry could seek opportunities in other sectors. For example, the defense industry needs specialists with expertise in industrialization, mass production, and automation, as it needs to produce substantially larger quantities than in the past.
Biontech: A Microcosm of the Broader Trend
Biontech exemplifies the trend of companies simultaneously cutting jobs and seeking employees for new roles. In March, the company announced the reduction of 950 to 1,350 full-time equivalents in Europe and North America, a figure that accounts for part-time positions. The job cuts are planned to occur between now and 2027. Such as, the Biontech site in Marburg is expected to lose 250 to 350 full-time equivalents due to declining demand for the COVID-19 vaccine, and up to 150 in Idar-Oberstein.
Though,Biontech also plans to create 800 to 1,200 positions in other areas. 350 jobs are expected to be created at the company’s headquarters in Mainz this year. The biotech company achieved a major breakthrough as a vaccine manufacturer during the COVID-19 pandemic. Biontech is also developing drugs to treat cancer,and research in this area is expensive.
german Job Market: A Spring Slump or a Sign of things to Come?
Is the German economic engine sputtering? This spring, the German job market isn’t exactly blooming. In fact, the F.A.Z. job radar indicates planned job cuts totaling nearly 38,000 in the first quarter alone.That’s the largest number of announced job cuts in a first quarter since 2020. While there are some new positions being created – almost 23,700 – the overall picture is undeniably concerning.
The Automotive Industry: Leading the Downturn
The automotive industry is bearing the brunt of these job cuts. roughly a quarter of the companies planning staff reductions, according to the job radar, are in the automotive and supplier industries. A survey by consulting firm Horváth reveals that 68% of automakers and auto suppliers are planning layoffs, including socially responsible terminations. Across all sectors, 44% of companies are considering short-time work (Kurzarbeit). This data comes from a late March survey of 200 executives from German-based companies with at least 200 employees and €200 million in revenue, primarily in manufacturing, logistics, or transport.
Did you know? “Kurzarbeit,” or short-time work,is a German government program that allows companies to reduce employees’ working hours (and pay) during economic downturns,with the government making up a portion of the lost wages.It’s a popular tool to avoid mass layoffs.
Regional Impact: Southern germany Hit Hardest
According to study leader Patrick Heurich,the outlook is particularly bleak in Southern Germany,home to many medium-sized manufacturing companies,especially in mechanical engineering and the automotive industry. While the automotive industry primarily aims to cut personnel in production, the logistics sector is focusing on savings in administration.
Horváth partner Heurich notes that companies are mainly reacting operationally to the situation by cutting costs for personnel or materials. He argues that opportunities for strategic realignments,such as portfolio adjustments or market repositioning,are being missed. He emphasizes that lasting business success cannot be achieved solely through cost-cutting measures.
Continental: A Case Study in Restructuring
The crisis facing German automotive brands is also impacting their suppliers.Such as,automotive supplier Continental has been undergoing a profound restructuring for some time,involving important job cuts. The previously announced reduction of 7,150 jobs has already been more than 80% implemented as of March.Together,Continental announced a further international reduction of 3,000 jobs in March,affecting research and growth,with 1,450 of those cuts in Germany.
Expert Tip: Companies undergoing restructuring should focus on clear communication with employees. Uncertainty can lead to decreased morale and productivity. Clearly outlining the reasons for the changes and the support available to affected employees can mitigate negative impacts.
The Paradox: Job Cuts Amidst a Skilled Labor Shortage
Contitech, Continental’s plastics division, also plans to close five plants in Germany due to weak demand from the automotive industry, perhaps affecting 580 jobs. In April,Continental announced plans to spin off Contitech,with its 39,000 employees,by 2026,most likely through a sale. This is part of a larger plan to separate the Automotive division (92,000 employees) as well, with an IPO planned for September 2025. These transactions aim to create three self-reliant companies from the Automotive, tires, and contitech divisions.
How can widespread job cuts coexist with a shortage of skilled workers? According to consultant Heurich, “Companies that are cutting jobs are still affected by the shortage of skilled workers as they are simultaneously looking for new employees to build up other business areas or implement new technologies.”
The Horváth survey indicates that 24% of companies consider the shortage of skilled workers a problem.Heurich suggests that internal retraining can onyl partially mitigate job cuts and fill the skills gap. Though, engineers who see no future in the automotive industry could seek opportunities in other sectors. For example, the defense industry needs specialists with expertise in industrialization, mass production, and automation, as it needs to produce substantially larger quantities than in the past.
Reader poll: Do you believe retraining programs are an effective solution to bridge the skills gap in the German job market?
Biontech: A Microcosm of the Broader Trend
Biontech exemplifies the trend of companies simultaneously cutting jobs and seeking employees for new roles. In March, the company announced the reduction of 950 to 1,350 full-time equivalents in Europe and North America, a figure that accounts for part-time positions. The job cuts are planned to occur between now and 2027.Such as, the Biontech site in Marburg is expected to lose 250 to 350 full-time equivalents due to declining demand for the COVID-19 vaccine, and up to 150 in Idar-Oberstein.
Though,Biontech also plans to create 800 to 1,200 positions in other areas. 350 jobs are expected to be created at the company’s headquarters in Mainz this year. The biotech company achieved a major breakthrough as a vaccine manufacturer during the COVID-19 pandemic. Biontech is also developing drugs to treat cancer,and research in this area is expensive.
German Job Market: A Spring Slump or a Sign of things to Come?
Is the German economic engine sputtering? This spring, the German job market isn’t exactly blooming. In fact, the F.A.Z. job radar indicates planned job cuts totaling nearly 38,000 in the first quarter alone. That’s the largest number of announced job cuts in a first quarter since 2020.While there are some new positions being created – almost 23,700 – the overall picture is undeniably concerning.
The Automotive Industry: Leading the Downturn
The automotive industry is bearing the brunt of these job cuts. roughly a quarter of the companies planning staff reductions, according to the job radar, are in the automotive and supplier industries. A survey by consulting firm Horváth reveals that 68% of automakers and auto suppliers are planning layoffs, including socially responsible terminations.Across all sectors, 44% of companies are considering short-time work (Kurzarbeit).This data comes from a late March survey of 200 executives from German-based companies with at least 200 employees and €200 million in revenue, primarily in manufacturing, logistics, or transport.
Did you know? “Kurzarbeit,” or short-time work, is a German government program that allows companies to reduce employees’ working hours (and pay) during economic downturns, with the government making up a portion of the lost wages.It’s a popular tool to avoid mass layoffs.
Regional Impact: Southern Germany Hit Hardest
According to study leader Patrick Heurich,the outlook is particularly bleak in Southern Germany,home to many medium-sized manufacturing companies,especially in mechanical engineering and the automotive industry. While the automotive industry primarily aims to cut personnel in production, the logistics sector is focusing on savings in administration.
Horváth partner Heurich notes that companies are mainly reacting operationally to the situation by cutting costs for personnel or materials. He argues that opportunities for strategic realignments,such as portfolio adjustments or market repositioning,are being missed. He emphasizes that lasting business success cannot be achieved solely through cost-cutting measures.
Continental: A Case Study in Restructuring
the crisis facing German automotive brands is also impacting their suppliers.Such as, automotive supplier Continental has been undergoing a profound restructuring for some time, involving important job cuts. The previously announced reduction of 7,150 jobs has already been more than 80% implemented as of March.Together,Continental announced a further international reduction of 3,000 jobs in March,affecting research and growth,with 1,450 of those cuts in Germany.
Expert Tip: Companies undergoing restructuring should focus on clear communication with employees.uncertainty can lead to decreased morale and productivity. Clearly outlining the reasons for the changes and the support available to affected employees can mitigate negative impacts.
The Paradox: Job Cuts Amidst a Skilled Labor Shortage
Contitech, continental’s plastics division, also plans to close five plants in Germany due to weak demand from the automotive industry, potentially affecting 580 jobs. In April, Continental announced plans to spin off Contitech, with its 39,000 employees, by 2026, most likely through a sale. This is part of a larger plan to separate the Automotive division (92,000 employees) as well, with an IPO planned for September 2025. These transactions aim to create three self-reliant companies from the Automotive,tires,and contitech divisions.
How can widespread job cuts coexist with a shortage of skilled workers? According to consultant Heurich, “Companies that are cutting jobs are still affected by the shortage of skilled workers as they are simultaneously looking for new employees to build up other business areas or implement new technologies.”
The Horváth survey indicates that 24% of companies consider the shortage of skilled workers a problem. Heurich suggests that internal retraining can onyl partially mitigate job cuts and fill the skills gap. however, engineers who see no future in the automotive industry could seek opportunities in other sectors. Such as, the defense industry needs specialists with expertise in industrialization, mass production, and automation, as it needs to produce substantially larger quantities than in the past.
Reader poll: Do you believe retraining programs are an effective solution to bridge the skills gap in the German job market?
Biontech: A Microcosm of the Broader Trend
Biontech exemplifies the trend of companies simultaneously cutting jobs and seeking employees for new roles. In March, the company announced the reduction of 950 to 1,350 full-time equivalents in europe and North America, a figure that accounts for part-time positions. The job cuts are planned to occur between now and 2027. Such as, the Biontech site in Marburg is expected to lose 250 to 350 full-time equivalents due to declining demand for the COVID-19 vaccine, and up to 150 in Idar-Oberstein.
Though,Biontech also plans to create 800 to 1,200 positions in other areas. 350 jobs are expected to be created at the company’s headquarters in Mainz this year. The biotech company achieved a major breakthrough as a vaccine manufacturer during the COVID-19 pandemic.Biontech is also developing drugs to treat cancer,and research in this area is expensive.
German Job Market: Is This Just a Temporary Setback? An expert Weighs In.
Keywords: German job market, job cuts Germany, automotive industry, skilled labor shortage, retraining programs, German economy, Kurzarbeit, Biontech.
The German job market is facing headwinds this spring, reporting a worrying number of planned job cuts. Is this a temporary slump,or a sign of a longer-term economic shift? We spoke with Dr. Anneliese Schmidt, a leading economist specializing in European labor markets, to get her viewpoint.
Time.news: Dr. Schmidt, thanks for joining us. The latest data indicates significant job cuts in Germany, particularly in the automotive sector. What’s your initial assessment?
Dr.Schmidt: Thank you for having me. The announced job cuts, especially within the automotive industry and its suppliers, are indeed concerning.The sheer volume – nearly 38,000 planned cuts in the first quarter – certainly warrants attention. This isn’t simply a blip; it reflects some deeper structural issues.
time.news: What are some of those structural issues impacting the German automotive industry so heavily?
Dr. Schmidt: Several factors are at play. The transition to electric vehicles (EVs) requires fewer workers in certain areas of production. Additionally, global supply chain disruptions and increased competition from abroad are putting pressure on German manufacturers. Remember, Southern Germany, heavily reliant on automotive and mechanical engineering, is expected to suffer the most. This emphasizes the regional vulnerability.
Time.news: The article mentions “Kurzarbeit,” or short-time work. How effective is this measure in cushioning the blow of these economic challenges?
Dr. Schmidt: Kurzarbeit is a valuable tool, particularly in the short term. It prevents mass layoffs by allowing companies to reduce working hours and wages, with the government supplementing the lost income. It helps retain skilled workers and avoids the costs associated with rehiring and retraining later. However, it’s a temporary fix. Kurzarbeit doesn’t address the underlying structural problems causing the downturn.
Time.news: Continental, a major automotive supplier, is undergoing significant restructuring involving job cuts. Is this indicative of a broader trend within the supplier network?
Dr. Schmidt: Absolutely. Continental’s situation is a bellwether for the entire automotive supply chain. As automakers shift towards EVs and face other challenges, suppliers are forced to adapt, often through restructuring and cost-cutting measures. This further exacerbates job losses.
Time.news: There’s a paradox at play: widespread job cuts alongside a persistent shortage of skilled workers. How do you explain this contradiction?
Dr. Schmidt: This is a critical point. The skills being shed in declining sectors aren’t necessarily the skills needed in growing areas. While automotive jobs are being cut, there’s a demand for workers with expertise in areas like software progress, data analytics, and renewable energy.The skills gap is real, and it requires strategic intervention.
Time.news: the article suggests that internal retraining may only partially mitigate the job cuts and skills gap. Are there choice solutions?
Dr. Schmidt: Retraining is essential, but it’s not a silver bullet. Firstly, retraining programs must be aligned with the actual needs of the industries where jobs are growing. Secondly, we need to encourage engineers and other skilled workers to consider opportunities in other sectors, such as the defense industry, which, as the article mentions, is experiencing increased demand. Targeted government initiatives to support sector switching, including financial incentives and career counseling, are crucial.
Time.news: Biontech, a company known for its COVID-19 vaccine, is also cutting jobs while simultaneously creating new positions. What does this reveal about the overall economic landscape?
Dr. Schmidt: Biontech’s situation highlights the dynamic nature of the modern economy. Even accomplished companies can face restructuring due to changing market demands. In Biontech’s case, declining vaccine demand necessitates workforce adjustments, but they are also investing heavily in cancer research, creating jobs in that area. This illustrates the constant need for companies and workers to adapt and reskill.
Time.news: what advice would you give to individuals currently working in sectors facing job cuts, such as the automotive industry?
dr. Schmidt: Be proactive. Don’t wait for a layoff to occur. Start assessing your skills and identifying areas where you can upskill or reskill.Explore opportunities in growing sectors and network with professionals in those fields. Take advantage of government-sponsored retraining programs. And most importantly, be open to new possibilities and career paths. The German economy, while facing challenges, still offers opportunities for those who are willing to adapt.
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