In Germany, the number of unemployed managers rose significantly in 2025 because companies reduced costs and streamlined hierarchies through restructuring. Furthermore, staff reductions, a weak economy, and a tighter labor market noticeably exacerbated the situation for managers as well. (handelsblatt: 13.01.26)
Executives particularly affected
Many corporations launched restructuring programs in 2025, eliminating entire management teams and thus distributing responsibilities among fewer people. As a result, the staff reductions also affected experienced executives, even though many departments retained operational functions.
The Federal Employment Agency recorded an average of around 43,000 managers registered as unemployed in 2024, but this figure rose to approximately 49,000 in 2025. At the same time, the number of unemployed managers in this group increased faster than in many other segments of the labor market.
Why companies cut management positions
Companies reduced management positions because the economic situation in 2025 slowed investment in many places and tightened budgets. Furthermore, organizational restructuring accelerated decision-making, but it also made traditional department and division head roles more frequently redundant.
Many affected employees became self-employed or accepted severance packages after separations, meaning the statistics do not reflect every case. Nevertheless, the reduction in personnel remained clearly visible in the agency reports.
Competition in the labor market increased
The job market for executives is becoming more competitive because many candidates with similar profiles are simultaneously seeking new opportunities. At the same time, companies are increasingly demanding demonstrable turnaround successes rather than focusing on titles and seniority.
In many companies, standardized processes replaced parts of management work, so restructuring not only reduced costs but also redefined responsibilities. This led to more project responsibility, while permanent management positions became less common.
Which Profiles Had Opportunities Again
The weak economy is dampening the willingness of many companies to create new management positions and is lengthening recruitment processes. Nevertheless, some managers are finding new jobs more quickly if they can demonstrate transformation, cost-cutting programs, and growth in challenging markets.
Companies are planning further restructuring measures in 2026 as well, because they want to permanently reduce fixed costs and prefer rapid decision-making. At the same time, job cuts at staff and intermediate levels remain a lever that will continue to drive downsizing this year.
What Followed in 2026
The job market will remain selective even after 2025, because companies are advertising fewer traditional management positions and focusing more on roles with clear profit and loss responsibility. However, the chances increase if candidates are open to changing industries and adapting their skills to the new requirements.