The IG Metall union in Bavaria is facing a massive wave of job losses in the metal and electrical engineering industries. Given the weak economic situation and ongoing structural changes, the union anticipates around 30,000 job losses. This is triggered by current or announced cutbacks in numerous companies, while only a fraction of new jobs are being created. Companies in the automotive sector and their suppliers are particularly affected. IG Metall also sees a risk to employees and regional industrial sites because the booming defense industry cannot compensate for the job losses. This threatens to restrict entire company structures and have long-term consequences for the labor market in Bavaria. (zeit: 20.02.26)
Job cuts already underway in many companies
According to district manager Horst Ott, measures to cut approximately 32,000 jobs are already underway or have been specifically announced in Bavarian companies. At the same time, according to a survey of 547 companies conducted by the IG Metall union, only about 3,000 new jobs are being created. This results in a significant net decline in employment. The figures show that many companies are adjusting their capacities, while investments in new areas are having only a limited impact.
The economic situation is exacerbating the problem, while industrial transformation is forcing many companies to undergo profound changes. Production processes are being restructured, costs reduced, and locations reassessed. This puts employees under pressure, even though numerous companies remain technologically well-equipped. The union is therefore warning of a gradual erosion of industrial jobs in Bavaria.
Automotive Industry at the Heart of the Development
The job cuts are hitting the automotive industry and its suppliers particularly hard. According to IG Metall, around 54 percent of companies in this sector are reducing their workforce. Besides major players like ZF Friedrichshafen and Bosch, many smaller companies, which often have fewer financial reserves, are also affected. These medium-sized businesses are considered the backbone of industry, which is why the job cuts there can have far-reaching consequences.
While the defense industry is growing, this trend is insufficient to offset the losses. According to IG Metall, for every ten jobs lost in the automotive sector, only one new job is created in the defense sector. Therefore, the overall balance remains significantly negative. The union sees this as a clear signal that individual booming industries don’t automatically solve structural problems.
Works Council Elections in the Shadow of Crisis
Alongside the economic pressure, IG Metall is focusing on the upcoming works council elections, which will take place starting in March. The union anticipates these elections will be unique because many employees are paying closer attention to co-determination in light of uncertain prospects. At the same time, district manager Horst Ott currently sees no breakthrough by right-wing groups in the companies. He explained: “From our current perspective, we can’t say that we’re being overrun by right-wing lists in the companies.”
Ott also emphasizes that the exceptional situation is primarily due to economic factors. “I currently assume that these will be unique works council elections – not because any particular groups are gaining ground, but because of the economic situation as it is.” With this, IG Metall is placing economic uncertainty at the heart of the current developments. While many employees fear for their jobs, the importance of employee representation in the workplace is simultaneously growing.
Structural Change as a Long-Term Challenge
Current figures show that Bavaria is facing a difficult phase of industrial transformation. On the one hand, new technologies and market shifts are changing the production landscape; on the other hand, economic problems are hindering investment. Therefore, IG Metall expects further adjustments in companies as long as a stable economic recovery does not take hold. For employees, this means continued uncertainty, while companies must realign their strategies.
At the same time, the union emphasizes that individual growth sectors alone are not enough to replace traditional industrial jobs. The crucial factor will be how quickly new industrial opportunities emerge and whether companies in Bavaria invest for the long term. The coming months are therefore considered pivotal for many locations.