Some 42% of German metal firms expect job cuts, survey finds
23.10.2026, DPA
Some 42% of companies in the German metal and electrical industry expect to cut staff within six months, according to a survey by employers' association Gesamtmetall, shortly before a second round of wage talks.
In the survey released on Friday, 39% of companies described their business situation as poor and 40% as satisfactory. Another 21% expect conditions to deteriorate further within six months.
The IG Metall trade union is demanding a 5% pay rise for the just over 3.7 million employees in Germany's metal and electrical industry.
The first round of regional talks in early October ended without a result, and talks are due to continue next week. The no-strike obligation ends on October 31, after which strikes are possible.
Gesamtmetall chief executive Oliver Zander pointed out in Berlin that there were sectors and areas doing well, such as the defence industry or medical technology. "If thousands more tanks or military equipment are ordered again, that doesn't mean the German metal and electrical industry will gain more production from it across the board," Zander said.
Zander said the defence industry had 200,000 employees, while the whole sector had 3.7 million.
At the same time, employers see production being shifted to sites abroad. "Domestic orders do not mean domestic production," Zander said. Abroad, he said, companies could produce with higher margins thanks to better conditions, such as lower personnel costs.
IG Metall: Employers should not plan for worst case
Nadine Boguslawski, the union's board member for collective bargaining, countered that the union did not demand doom planning from employers but forward-looking solutions. Cuts did not create a single job, she said: "We demand a clear commitment to the location and a halt to job cuts."
The union has therefore also put job security and profit-sharing on the table, alongside the demand for 5% more pay.
The survey was conducted between October 7-16, with 1,461 companies employing around 800,000 people taking part.
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