Germany's Leading Companies Cut Jobs as Economic Challenges Persist

DAX companies report first workforce reduction in years, with uneven sector performance and ongoing cost-saving measures shaping 2025.

DAX companies reduced their workforce by 19,300 jobs in 2024, marking a 0.5% decline and the first net job loss in years.
While 60% of DAX firms achieved slight revenue growth of 0.3% and a 2.9% increase in operating profits, the automotive sector saw a 3% revenue decline and a 26% drop in profits.
Defense and aerospace sectors outperformed, with companies like Rheinmetall and MTU Aero Engines reporting over 33% revenue growth.
Recent announcements from Audi and Siemens highlight continued job cuts as companies implement cost-saving strategies in response to ongoing economic stagnation.
Geopolitical risks, including U.S. trade tensions and high energy costs, remain significant hurdles to Germany's economic recovery in 2025.