STUTTGART (dpa-AFX) - Job cuts in Baden-Wuerttemberg's metal and electrical industries are continuing unabated. More than 9,000 positions were eliminated in the first three months of the year, according to Peter Sebastian Krause, head of the Suedwestmetall employers' association, in Stuttgart. 'I am deeply concerned that this trend will persist in the medium term unless there is a fundamental improvement in framework conditions.' Since employment peaked in 2019, nearly 80,000 jobs have been shed. In total, just under 930,000 people remain employed in the southwest's key industrial sector.
Most recently, automation specialist Festo announced plans to cut around 1,300 jobs in Germany. All major corporations had already announced downsizing programs last year, including Daimler Truck, ZF Friedrichshafen, Bosch, Mahle, Porsche, and Voith. These are joined by numerous medium-sized enterprises that are likewise reducing their headcount.
Krause, representing the employers, points to a persistent underlying issue: the international competitiveness of Germany as a business location has deteriorated significantly in recent years. 'The foundation of our business model has begun to slip. Manufacturing at home has become so costly that many companies are no longer investing here, are relocating or ceasing production - or are at least considering doing so.'/ols/DP/zb
