Latest news with #JanBrorhilker
Russia Today
3 days ago
- Automotive
- Russia Today
Germany hemorrhaging industrial jobs
Germany's industrial sector has lost more than 100,000 jobs over the past year as the country's economic downturn drags on, according to analysis shared by the German Press Agency (dpa). The report published last week, based on analysis by consultancy EY, shows the German auto sector accounted for around 45,400 net job losses, making it the hardest-hit segment of the economy. At the end of the first quarter, German industry employed 5.46 million people, down 1.8% or 101,000 jobs from a year earlier, according to the study based on data from the Federal Statistical Office. Since the pre-pandemic year 2019, the number of industrial employees has slumped by 217,000, a 3.8% decline. The sector had reached a record high of around 5.7 million jobs in 2018. According to Jan Brorhilker, managing partner at EY, industrial companies are under enormous pressure. 'Aggressive competitors, such as those from China, are pushing down prices, key sales markets are weakening, demand in Europe is stagnating at a low level, and the entire US market is a major question mark,' he said. 'At the same time, companies are struggling with high costs – for example, for energy and personnel.' Brorhilker warned that at least 70,000 additional jobs could be lost by the end of the year. Companies, particularly in machinery and automotive manufacturing, have launched cost-cutting programs to cope with the challenging market conditions. In the automotive sector, which is grappling with declining sales, growing competition from China, and the shift to e-mobility, nearly 6% of jobs were cut over the past year, the report said. By the end of March, employment in the industry had dropped to around 734,000. Significant job losses were also recorded in metal production and the textile industry, with employment in both sectors falling by more than 4%. The crisis in Germany's industrial sector has reignited debate over the country's attractiveness as a manufacturing base, with observers warning of creeping deindustrialization. According to experts, the decline reflects the economic fallout from severing ties with Russian energy. After the 2022 sabotage of the Nord Stream pipelines and sanctions, European gas prices quadrupled year-on-year, placing severe strain on both industry and households. However, Chancellor Friedrich Merz has adopted a firm stance against Russia, vowing to 'increase pressure' on Moscow and weaken its 'war machine' through further sanctions. His government recently pledged an additional €5 billion ($5.6 billion) in military aid to Ukraine.
The Sun
07-06-2025
- Automotive
- The Sun
German industry cuts 100,000 jobs within a year
FRANKFURT: The ongoing economic crisis has cost German industry more than 100,000 jobs within a year, with the country's key automotive sector hit the hardest, according to an analysis by auditing and consulting firm EY shared with German Press Agency (dpa). In the auto sector, around 45,400 jobs were cut on a net basis. By the end of the first quarter, German industry employed 5.46 million people - 1.8 per cent or 101,000 fewer than a year earlier, according to the study, which is based on data from the Federal Statistical Office. Since the pre-coronavirus year of 2019, the number of employees has fallen by a total of 217,000, a decline of 3.8 per cent. In 2018, the industry had reached a record high of around 5.7 million employees. Industrial companies are under immense pressure, said Jan Brorhilker, managing partner at EY. 'Aggressive competitors, particularly from China, are driving down prices, key sales markets are weakening, demand in Europe is stagnating at a low level, and there is significant uncertainty surrounding the entire US market. At the same time, companies are struggling with high costs - for energy and personnel, for example.' There is no end to the job cuts in sight, Brorhilker said. Revenue from German industry has continued to decline slightly after a slump at the beginning of 2024. Brorhilker expects at least 70,000 more industrial jobs to be lost by the end of the year. Companies, particularly in mechanical and automotive engineering, have initiated cost-cutting programmes. 'We will continue to hear a lot of bad news for the time being before things start to improve again.'
The Star
16-05-2025
- Business
- The Star
Roundup: German companies see sharp profit drop due to U.S. trade disruptions
FRANKFURT, May 16 (Xinhua) -- The majority of German large companies listed on Germany's benchmark DAX index suffered a sharp profit decline of 8 percent in the first quarter (Q1) of 2025, according to a report released by consulting firm Ernst & Young (EY) on Friday. Henrik Ahlers, chairman of the executive board and country managing partner at EY Germany, warned that the U.S.-initiated trade disruptions pose serious challenges to Germany's export-oriented industries. "Many firms built up inventories in the U.S. or accelerated sales to pre-empt tariff hikes," he said. "The full impact of these tariffs is likely to become apparent in the second half of the year." The automotive sector alone experienced a dramatic 42 percent plunge in profits, with industry giants BMW, Mercedes-Benz, and Volkswagen struggling. The overall situation of German industry is more challenging than ever, said Jan Brorhilker, managing partner for assurance at EY Germany. Germany's chemical industry is also preparing for a prolonged downturn, as trade tensions intensify and customer sentiment continues to weaken. Major players such as BASF, Covestro, Evonik, and Lanxess have reported a significant drop in global orders, based on their newly released Q1 reports. The companies cite escalating trade tensions and the unpredictable tariff policies of the U.S. administration as key drivers behind the slowdown. "In particular, there is a risk of further economic slowdown in the second half of the year," said Evonik CEO Christian Kullmann, emphasizing that many sectors are finding long-term planning increasingly difficult. DAX companies cut 32,000 jobs in the first quarter of 2025, reversing several years of workforce expansion, according to EY, which also anticipates further reductions as companies pursue aggressive cost-cutting strategies. Germany's current economic downturn is exceptional, said Frank Grell, head of the german restructuring and special situations at Latham and Watkins. "In past crises, specific industries were hit hardest - this time, companies across nearly all sectors are facing significant struggles."
