Thousands of German Manufacturing Jobs to Disappear as Evonik Ends Polyester Production and Ford Scales Back EV Hopes
19.06.2026 - 18:40:03 | boerse-global.de
Germany’s industrial landscape is undergoing its most severe reshaping in a decade, with two major employers announcing deep workforce reductions and a top labor court simultaneously tightening protections for workers.
Evonik, the specialty chemicals group, will eliminate approximately 3,200 positions worldwide by the end of 2029. The majority—around 2,150 jobs—will be cut at its German sites. This new wave of layoffs supplements an already-running efficiency program that is expected to remove another 2,800 jobs by the end of 2026. All business and administrative units will be affected, with management tiers facing the hardest hit.
A key driver of the restructuring is the phase-out of Evonik’s unprofitable polyester business, which will cease entirely by 2027. The site in Witten, employing 266 people, will close. Job reductions are also planned in Marl and Shanghai.
CEO Christian Kullmann cited global uncertainty and weak economic growth as reasons for the move. Despite the scale of the cuts, the company insists it will maintain social compatibility. An agreement with the IGBCE union rules out compulsory redundancies in Germany until 2032. Instead, severance packages, partial retirement, and mutual termination agreements will be used. Evonik has set aside €100 million to fund these measures.
The automotive industry is also bleeding jobs. Ford’s Cologne plant will see about 3,500 positions cut by June 2026 across development, administration, and production. The cause is weak demand for new electric models. Here, too, the company is relying on voluntary programs.
These developments fit a broader pattern. According to a study by the Institute of the German Economy (IW), the manufacturing sector has lost about 420,000 jobs since 2019. In 2025, employment in the sector fell to 6.6 million—the lowest level in a decade.
Analysts note that much of the reduction happens gradually, through vacancies left unfilled. But the pressure is mounting: Wacker plans 1,500 job cuts and Lanxess 550.
Amid this downturn, the Federal Labor Court (BAG) issued a decision on June 18, 2026 that strengthens the hand of employees on parental leave. The special protection against dismissal now begins afresh for each separate segment of a split parental leave period, even if all segments were applied for at once. Without approval from the state authority, any termination is void.
The BAG also clarified the rules for mass layoff notifications. These must be filed with the Federal Employment Agency before any dismissal is announced. Errors in the procedure or a premature notification—before the works council consultations are complete—render the termination invalid.
The structural shift is now reaching the management layer. In 2025, the number of unemployed executives rose by 14 percent to 49,000. Labor lawyers advise affected managers to stay pragmatic. In severance negotiations, one month’s gross salary per year of employment is considered a realistic benchmark.
Experts also urge not to be pressured into signing quickly. A reasonable reaction time of one to two weeks should be taken.
