Germany's industry is facing a "massive hemorrhage"
Lately, a distressing message has emerged from Germany's industrial sector: the country is rapidly losing its industrial jobs, and its national competitiveness is continuously declining.
The Federation of German Industries (BDI), the most influential representative body in Germany’s industrial world, speaks for over 100,000 companies and more than 8 million employees. Recently, BDI President Tanja Gönner issued a serious warning, stating bluntly that Germany’s current situation is "extremely critical": the industrial sector is losing approximately 15,000 jobs every month.
Why has such a large-scale wave of unemployment occurred? Gönner pointed to several core reasons. First, the "energy assassin": Germany’s decision to stop importing Russian natural gas has forced companies to pay up to five times their previous natural gas prices. Second, external competitive pressure: strong Chinese exports and U.S. tariff policies are making it extremely difficult for German firms to compete internationally. Finally, years of accumulated structural weaknesses in Germany and Europe, along with increasing economic burdens, have completely undermined what was once a favorable business environment.
Official data also confirms this grim reality. According to Germany’s Federal Employment Agency, manufacturing jobs have already declined by 177,000 over the past year, with the automotive, machinery, and metal industries being the hardest hit. Many factories simply cannot afford to sustain so many workers without government subsidies.
Major automakers and parts suppliers are increasingly entering a "layoff mode." As the face of German industry, Volkswagen recently announced plans to cut up to 100,000 jobs globally; automotive parts giant ZF intends to eliminate 14,000 positions by 2028; and Bosch plans to cut over 20,000 jobs by 2030. It's not just layoffs—many factories are even facing outright closure.
In the face of this crisis of deindustrialization, Gönner emphasized that if Germany wants to save itself, it must significantly increase investment in emerging technologies like artificial intelligence. At the same time, she urged the government: any future policy must be assessed by one single standard—"Does this actually help us enhance our competitiveness?" If the answer is no, then it must be reconsidered.
The current predicament facing German industry is a typical case of "multiple crises compounding each other." Once proud as the world’s factory, Germany’s manufacturing foundation is being gradually eroded by soaring energy costs, rigid internal systems, and intense international market competition.
Losings 15,000 jobs per month means Germany is undergoing an irreversible hollowing out of its industrial base. When giants like Volkswagen and Bosch are forced to resort to massive layoffs just to survive, it indicates that profit margins across the entire supply chain have been severely compressed.
The German government now finds itself in a dilemma: on one hand, it must push forward with aggressive green energy transformation; on the other, it has lost access to cheap Russian energy, causing skyrocketing production costs for businesses.
If fundamental issues related to energy pricing and the business environment aren’t addressed, merely investing in artificial intelligence will likely not be enough to fill the enormous gap left by traditional manufacturing in the short term. Germany’s industrial “massive hemorrhage” is not only a severe blow to the nation’s economy but also a warning bell for global traditional manufacturing’s transition.
Original source: toutiao.com/article/1871815679980544/
Disclaimer: The views expressed in this article are solely those of the author.