Business

Metal industry employers warn of further job cuts on 4 November 2026

The employers’ association Gesamtmetall sees the risk of job losses in the metal and electrical industries accelerating amid weak demand and high production costs. It cites survey results indicating that many businesses plan to cut staff.

On 4 November 2026, employers in the metal and electrical industries warned of a further rise in job losses in their sector. The association Gesamtmetall cited an internal survey, persistently high production costs and an uneven distribution of orders, which are threatening the viability of numerous companies. The warning follows recent company announcements and continuing warning strikes in the sector.

According to Gesamtmetall, around 42 per cent of businesses surveyed expected to cut staff in the following six months, based on a snap poll conducted from 7 to 16 October 2026. The association said 1,461 companies employing a total of around 800,000 people took part. Gesamtmetall chief executive Oliver Zander told journalists in Berlin that isolated positive signs in order books were not reaching every company, while structural problems such as high energy and labour costs and bureaucracy continued to weigh on businesses.

Parallel company decisions underline the situation: several major suppliers and manufacturers announced sweeping Restructuring plans or site closures. These companies cited falling demand from the automotive industry, rising input costs and the need to safeguard competitiveness through cost-cutting. The trade union IG Metall criticised the employers’ decisions while also calling for negotiations to safeguard jobs in the ongoing collective bargaining round.

The economic factors are well documented: although inflation-adjusted orders in some parts of the sector are currently above year-earlier levels, the recovery varies considerably by region and segment; production remains subdued in many areas. Industry representatives warn that, without structural relief – for example, on energy prices or bureaucracy costs – investment could fall further, leading to additional waves of redundancies.

The consequences would include not only direct job losses but also wider economic effects across supply chains and regional economies with a high concentration of industry. In light of recent statements, policymakers and social partners face the task of combining short-term support measures with longer-term reforms. The survey data and company announcements cited are based on information from the association and several independent media reports dated 3 and 4 November 2026; outstanding questions concern the scale and timing of specific job cuts at individual companies.

Editor: Daniel Mayer (Article created with AI assistance).

Sources