German DAX firms cut jobs at faster pace than peers in France, Italy and Spain

According to the Employment Barometer 2026 compiled by EY-Parthenon, German DAX corporations have been the most aggressive in cutting jobs, shrinking their domestic workforce by around one percent. In contrast, top French companies experienced only a 0.2 percent drop, and firms in Italy and Spain each posted a 0.9 percent increase. Overseas, German firms eliminated about 1.3 percent of positions.

The report highlights that the biggest employers—those with more than 100,000 staff—were responsible for the majority of cuts, while smaller DAX companies tended to expand employment. Constantin Gall, EY-Parthenon’s Managing Partner for Western Europe, warned that the trend signals a serious signal for Germany’s business environment, citing weak demand, high costs and regulatory pressures. Sectoral differences were noted, with aerospace, defence, capital goods and IT firms adding staff, whereas consumer goods and pharma/life-sciences saw reductions, and the auto industry cutting jobs at home but hiring abroad.