A report by Pierre L. Gosselin discusses the alarming situation in Germany’s metal and energy sectors, highlighting significant job losses and financial struggles exacerbated by government policies and high operational costs.
• Job Loss Projections: The employer association Gesamtmetall predicts that the metal and electrical industries in Germany will lose up to 150,000 jobs in 2026, adding to the 270,000 jobs lost since 2018. This ongoing erosion of employment is referred to as “deindustrialization in time-lapse” by CEO Oliver Zander.
• Economic Factors: The industries are suffering from high energy prices, increased corporate taxes, rising social security costs, and bureaucratic challenges attributed to government policies, especially the Green New Deal.
• Specific Company Cuts: Volkswagen, a major player, plans to cut 50,000 jobs in Germany by 2030, increasing its initial target of 35,000 job reductions. The cuts come as the company reported a drastic profit drop of over 50%, with operating profit falling to €8.9 billion in 2025. The job loss will impact all of Volkswagen's subsidiaries within Germany.
• Government Role: The current economic downturn is largely linked to high operational costs in Germany, which are seen as detrimental to competitiveness in the global market. The reliance on state-funded defense orders for recent order increases shows the instability of the core business sectors.
Germany’s metal and electrical industries face a severe crisis with projections of massive job losses due to high operational costs and bureaucratic hurdles. Volkswagen’s significant workforce reduction signals a broader trend of deindustrialization, raising concerns about the long-term viability of the manufacturing sector in Germany.
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