Job Cuts Rise in Germany Due to AI and Economic Pressures
Major German firms like Lufthansa and Bosch are cutting jobs as AI integration and economic difficulties escalate.
- • Lufthansa to cut 4,000 jobs by 2030, mainly in admin and IT.
- • Bosch and Ford also reducing staff, with Bosch cutting 13,000 jobs by 2027.
- • Over 40% of German companies are utilizing AI, with 27% considering job cuts.
- • The German economy is projected to grow only 0.2% in 2025.
Key details
Amid rising economic pressures and the integration of artificial intelligence (AI), major German companies are embarking on substantial job cuts, significantly impacting the workforce. Lufthansa has announced plans to eliminate around 4,000 jobs in Germany by the year 2030, primarily targeting administrative and IT roles. This restructuring strategy aims to enhance the airline's profitability while adhering to a socially responsible approach, employing methods such as natural attrition rather than compulsory redundancies. According to Lufthansa, this transformation will not affect jobs involving pilots and flight attendants.
Criticism of these layoffs has emerged from the Verdi union, labeling them a potential 'slaughter' of jobs and warning that this may usher in further reductions, including the possibility of relocating up to 1,500 positions abroad due to economic strains and a high tax burden on the industry.
The trend of job cuts is not confined to Lufthansa; other significant players like Bosch and Ford are also navigating similar waters. Bosch is set to reduce its workforce by 13,000 by 2027, while Ford has announced cuts of 2,900 jobs, all in an effort to streamline operations through AI enhancements. It is reported that over 40% of German companies have adopted AI technologies, with 27% planning further job reductions as they integrate automation into their systems.
The job reduction trend also reflects broader economic challenges faced by Germany, with the economy expected to grow a mere 0.2% in 2025 following two consecutive years of recession. Despite a slight improvement in consumer sentiment, high costs continue to dampen purchasing enthusiasm. The rise in corporate insolvencies by 12.2% in the first half of 2025 adds to concerns about the job market and economic stability, highlighting the urgent need for structural reforms to foster a sustainable recovery in the labor landscape. Experts note that while AI could facilitate new jobs in the IT and data sectors, it also calls for significant reskilling of the current workforce.