German Manufacturing Job Losses Top 100,000 With Daimler Cuts

(Bloomberg) --

Germany may have narrowly avoided a recession in the third quarter but pressure on the country’s industrial champions shows no sign of abating.

Daimler AG said Friday it will shed more than 10,000 positions, lifting the tally of job cuts announced this year across Germany’s manufacturing sector to more than 100,000, according to Bloomberg calculations.

Companies from Volkswagen AG to Siemens AG are letting workers go as Germany’s powerful automotive industry struggles with a shift toward electrification and self-driving cars and makers of machinery and robots are hit by slower exports and trade disputes. Producers of renowned German products such as Meissen porcelain and WMF kitchenware are also trimming their workforces.

German Manufacturing Job Losses Top 100,000 With Daimler Cuts

While the country’s unemployment rate, at 5%, remains close to its historic low, the number of freelancers is rising and short-term work has been creeping up since last year.

Automotive companies in particular are tightening their belts. Daimler alone pledged to save a total of at least 1.4 billion euros ($1.5 billion) in personnel expenses.

The full effect of the cuts -- which also affect units of German companies abroad --- may not be felt immediately. Labor laws and powerful unions make it difficult to fire workers, and many large companies have agreements banning forced dismissals, meaning job-cut programs have voluntary elements and sometimes run for years.

Still, the deteriorating prospects for employment could turn into a headache for the German government, which has been considering following countries from China to the U.K. in beefing up investments to stimulate its economy.

Here is a rundown of the main job cuts announced since the beginning of the year by German industrial companies. The tally includes foreign corporations that have announced cuts affecting staff in Europe’s biggest economy. It excludes the financial industry, cuts that remain unconfirmed, and programs where companies have not yet specified how many jobs will go.

CompanyTotalWhereDate announcedComment
Airbus1,100GermanyApril 11At Premium Aerotec in Augsburg
Audi9,500GermanyNov 26
BASF6,000GlobalJune 27Half of those in Germany
Benteler600GermanyNov 21
Bilfinger200GermanyNov 13Admin and IT jobs
Bosch2,840GermanyOct 22At three sites
Brose2,000GermanyOct 17Bamberg, Hallstadt, Coburg, Wurzburg
Continental20,000GlobalSept 257,000 in Germany
Daimler10,000GlobalNov 29
Enercon3,000GermanyNov 8Jobs to go at Enercon and its suppliers
Diehl Aviation240GermanyOct 7
Duerr350GermanyNov 6Closing of production in Hemmoor at Homag
Ford5,000GermanyJune 27Part of 12,000 cuts across Europe
GEA Group800GlobalSept 26By the end of 2020
Goodyear1,050GermanyMar 19Fulda, Hanau factories
Krones400Mostly GermanyOct 30Between 300 and 500
Kuka350GermanyMarch 28Augsburg headquarters
Leoni2,000GlobalMarch 18500 in high-wage countries
Maersk100GermanyNov. 29Danish container liner shrinks German arm Hamburg Süd
Mann+Hummel1,200GlobalApril 11300 in Germany
Meissen201Nov 14
Michelin858GermanySept 25French tire maker closes German site
Miele1,720GloballyOct 30890 in Germany
Philip Morris950GermanyMay 28Ends cigarettes production in Berlin
Sanofi466France, GermanyJune 19French drugmaker cuts R&D jobs
Schaeffler2,200Mostly GermanyOct 10
Schuler500GermanyJuly 29Production jobs
Siemens13,100GlobalJune 182,700 at its power and gas unit, 4,900 in digital industries, 3,000 at smart infrastructure, 2,500 corporate
Stabilo-Schwan200GermanyJuly 17Jobs moved to Czech Republic, U.S.
Stahl Holding Saar1,500GermanySept 27Jobs in Saar region
Südzucker150GermanyJan 29Closing of two factories
Thyssenkrupp6,000Germany, elsewhereMay 104,000 in Germany
Vestas500GermanySept 27Danish wind turbine maker shrinks German plant
Voith Turbo230GermanyOct 14Closing two plants
Vossloh200April 23Cuts 5% of staff
Volkswagen4,000GermanyJune 5VW brand will cut as many as 4,000 general and administrative jobs through 2023
WMF400July 10

©2019 Bloomberg L.P.

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