German Industry Sheds 177,000 Jobs by December 2025 as Sick, ZF, and Volkswagen Stumble

Germany's industrial sector loses 177,000 social-security jobs by end of 2025; automakers cut 52,000, suppliers like Sick and ZF face layoffs, and Volkswagen may close four plants.

The German industrial sector lost 177,000 social-security-paying positions through December 2025, according to data from the Federal Employment Agency. The machine-building industry alone shed 28,000 jobs, while automakers and their suppliers cut 52,000 — a slump that has left middle-sized manufacturers and global giants alike struggling to stabilise.

At Sick, a sensor producer based in Waldkirch, talks between management and employee representatives over a works agreement have collapsed. The company had announced in mid-April that it would eliminate roughly 500 of its 5,000 jobs in southern Baden-Württemberg. Chief executive Mats Gökstorp cited massive economic headwinds. The now-failed negotiations were meant to set rules for the reduction and soften social hardships. Their breakdown leaves around 500 workers in limbo, with the employer insisting on adjustments while staff demand reliable prospects for those who remain.

Tensions are running high across the industry. On 14 July, a works meeting at ZF Friedrichshafen — attended by more than 4,500 employees — had to be broken off after the atmosphere escalated over planned cuts to above-tariff benefits. The company’s human resources director was booed off stage. ZF reported a loss of €2.1 billion for 2025, double the previous year’s deficit, and plans to cut up to 14,000 positions in Germany. Particularly controversial is the removal of the so-called “Zeppelin allowance,” which would cost roughly 7,500 staff members several hundred euros per month in pay.

Volkswagen faces even more drastic restructuring. As many as four plants in Germany could close from 2031 onward, with up to 100,000 jobs affected worldwide. Experts warn of a domino effect: each job cut at a large carmaker threatens three to five more positions among suppliers.

For workers at Sick’s headquarters in Waldkirch, the suspension of talks means continued uncertainty. It remains unclear whether and when negotiations might resume. Meanwhile, in mid-July, ThyssenKrupp Polysius in Neubeckum sealed the elimination of 430 jobs through a balance-of-interests agreement and social plan.