Germany's Industrial Landscape Shifts as Major Employers Slash Jobs and Shut Plants

From automakers to bakeries to department stores, a wave of restructuring is sweeping across German industry. The most dramatic plan comes from Volkswagen, where Chief Executive Oliver Blume is pushing for more than 100,000 job cuts worldwide and the closure of four domestic plants — a move that threatens to ignite an internal power struggle with labor representatives and the state of Lower Saxony.

Blume is prepared to bypass the supervisory board and call an extraordinary general meeting if his turnaround package is blocked, according to people familiar with the plans. The affected factories include Volkswagen’s sites in Hanover, Emden and Zwickau, as well as the Audi plant in Neckarsulm. The works council and the state government, which together control 12 of the 20 votes on the supervisory board, are pushing back. A collective bargaining agreement prohibits compulsory redundancies for operational reasons until 2030, forcing Blume to explore alternative routes.

To stabilize finances, Volkswagen is considering selling Ducati and Europcar, along with a partial exit from truck maker Traton. The carmaker also intends to slash its model lineup from 150 to 75. The decisive supervisory board meeting is scheduled for July 9.

The pain extends far beyond Wolfsburg. In Saxony, Germany’s largest tile factory in Leisnig is shutting down because its energy costs were no longer hedged as of July 1. Some 165 workers will lose their jobs — at least temporarily. New owners plan to restart production in 2027 with at least 100 employees.

In Thuringia, insolvent auto supplier Bohai Trimet will close its Sömmerda plant by November, eliminating nearly 100 positions. The company, which makes aluminum components for Volkswagen, filed for insolvency in April 2025. A second site in Harzgerode, Saxony-Anhalt, with around 600 staff, is still seeking an investor, and capacity there is secured through the end of the year.

At the Leuna chemical complex, the rescue company Leuna Polyamid has filed for insolvency under self-administration. More than 400 jobs hang in the balance after raw material prices surged amid tensions in the Strait of Hormuz. The state of Saxony-Anhalt had already provided €80 million in support. Now a buyer must be found within six months.

Retail and Services Face Their Own Squeeze

Home-decor chain Depot, after its second insolvency filing in May, is closing 66 of its 155 German stores. Locations in Berlin, Munich, Stuttgart, and several cities in North Rhine-Westphalia — including Bonn, Paderborn and Münster — are affected. Around 330 employees will lose their jobs. Managing Director Bruno Gries blamed tariffs, fierce online competition and weak consumer demand. Clearance sales are expected to wrap up by the end of July.

Mister Spex is restructuring its operations. The eyewear retailer will shut its logistics hub in Berlin-Spandau by the end of 2026, outsourcing logistics to Arvato and lens production to Rodenstock. The move affects 125 jobs and is part of a push toward a capital-light business model.

Even the social sector is not immune. Insolvent daycare operator Pro-Liberis is cutting 65 of its 620 positions. A rival provider, Zukunftsschmiede, is taking over 29 kindergartens, securing 1,400 childcare places. The restructuring process is expected to conclude by autumn.

Chinese E-Commerce Giant Eyes European Electronics Market

While many German companies are contracting, the electronics retail sector is bracing for a large cross-border deal. Germany’s Federal Ministry for Economic Affairs has approved the takeover of MediaMarktSaturn by Chinese e-commerce group JD.com, subject to strict data-protection conditions. France and Italy have also cleared the transaction. The European Commission is still examining potential subsidy distortions, with a ruling expected by October 2. JD.com anticipates full clearance in the second half of the year.

en | boerse | 69663116 |