Job cuts in Bavaria: 18,000 jobs in the M+E industry gone!

Job cuts in Bavaria: 18,000 jobs in the M+E industry gone!

The Bavarian metal and electrical industry is facing dramatic job cuts. A total of 18,000 jobs were cut in the industry in the first half of 2025. This means that there are currently only 846,000 people employed in the metal and electrical industry reports the market mirror. The decline is not only noticeable in Bavaria, but also affects the industry nationwide, which has lost over 60,000 jobs since the beginning of the year. The number of employees in May 2025 was 2.5 percent lower than in the previous year.

Important sectors within the industry, such as automobile manufacturers and their suppliers, are particularly suffering from the losses in China, which is having a negative impact on production. The aviation industry is also struggling with challenges, while large companies such as Siemens are not experiencing the expected upswing.

Current developments and forecasts

In the second quarter of 2025, production in the Bavarian metal and electrical industry fell by 1.6 percent compared to the previous year, resulting in a total decline of 3.5 percent. Bertram Brossardt, general manager of the employers' associations bayme and vbm, said that despite new orders increasing by 2.8 percent compared to the previous year, there is no upward trend reversal according to the Tagesschau. Capacity utilization in the factories was 77.7 percent in the second quarter, which is below the necessary rate of 85 percent.

The Ifo Institute also predicts that industry in Bavaria will continue to cut staff. Every second company in the automotive sector plans to cut further jobs in the coming months. In addition, demand from companies has recently fallen again and the economic conditions are considered inadequate by employers' associations. The employers' association Gesamtmetall is therefore demanding better competitive conditions from politicians.

Policies and challenges

The new federal government has already taken measures such as reducing electricity tax and an emergency investment program to offer support to the industry. Nevertheless, Gesamtmetall managing director Oliver Zander emphasizes the urgency of further measures. In particular, companies rely on reducing bureaucracy in order to become more competitive again.

The current situation in the Bavarian metal and electrical industry remains tense and the challenges for employees remain serious. While new orders have increased slightly, the negative effects on employment and production figures appear to be difficult to overcome.