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DAX Companies Face Profit Decline and Job Cuts
2025-05-16 10:30:09
Economy
Business

DAX Companies Face Profit Decline and Job Cuts

The largest publicly listed companies in Germany, known as the DAX, are experiencing a significant profit decline. According to an analysis by consulting firm EY, these companies' profits shrank in early 2025 due to a sluggish economy and intensified global competition.

In response, over 30,000 jobs were cut. While overall revenue increased by 3.3% in the first quarter, ten companies, including BMW, Mercedes-Benz, BASF, and Bayer, reported declines.

The operating profit dropped by 8%, with 16 companies showing lower earnings than the previous year. Employment reduced by 1%, equating to a loss of about 32,000 jobs.

Despite these challenges, some resilience was noted among the DAX companies. Trade tensions between the US and its partners have yet to fully impact financial results, but further job reductions are anticipated as companies implement cost-cutting measures.

Related news on that topic:

Mixed Economic Growth in the Eurozone

The Eurozone's economic landscape reveals a complex picture of growth and disparity. In the first quarter of 2023, the economy expanded by 0.3 percent, slightly below expectations. This growth, however, masks significant variations among member states. Spain outperformed with a robust increase of 0.6 percent, while larger economies like Germany and France showed only modest gains. Notably, industrial production surged by 2.6 percent in March, driven by strong performances in countries like Ireland, Malta, and Finland. Yet, not all nations shared in this upswing; declines were observed in Belgium and Greece, highlighting the uneven recovery within the Eurozone. While the figures suggest a cautious optimism, analysts caution that the overall economic environment remains fragile. In contrast, the UK economy reported a stronger-than-expected growth of 0.7 percent in the same period, prompting discussions about sustainability amid external pressures such as tariffs from the US. As Europe navigates its economic challenges, the focus will remain on fostering stability and addressing the disparities that define its recovery.

UK Leads G7 in Economic Growth Amid Trade Uncertainties

The UK economy expanded by 0.7% in the first quarter of 2025, making it the fastest-growing among G7 nations. This growth was fueled by a robust performance in services, retail, and computer programming. However, challenges such as the impact of new US tariffs and a slowdown in manufacturing loom large. The government has taken significant steps, like launching the Great British Energy company with an £8.3 billion investment to boost clean energy. Despite these efforts, the construction sector stagnated. Economists predict a slowdown in the coming quarters due to the repercussions of trade tensions. Chancellor Reeves praised the growth figures but acknowledged the need for potential tax increases to support public spending. Meanwhile, other regions like the Euro Zone and Indonesia also reported growth, highlighting a global trend towards economic recovery, albeit with unique regional challenges.

Read 5 more recent news on this topic

The press radar on this topic:

AFP
16. Mai 2025 um 07:27

Profits of DAX companies shrink - 32,000 jobs cut

The profits of the 40 largest DAX companies in Germany have declined at the beginning of the year, while over 30,000 jobs were cut in the first three months, as an analysis by EY shows. Despite a 3.3 percent increase in sales, ten companies, including BMW and Mercedes-Benz, reported declining sales. The total operating profit of the DAX companies fell by eight percent, and 16 companies reported lower profits than in the previous year. EY forecasts that the number of employees will continue to..
n-tv.de
16. Mai 2025 um 08:17

Reaction is major job cuts: Economic downturn depresses profits of DAX companies

The profits of the DAX companies have declined significantly in the first quarter of 2025, leading to job cuts of over 30,000. Automakers and chemical companies are particularly affected, while defense companies like Rheinmetall and aerospace companies like MTU Aero Engines have seen sales increases. The trade and tariff disputes between the US and its partners have not yet been reflected in the balance sheets, but EY expects the job cuts to continue to increase over the course of the year.
focus
16. Mai 2025 um 02:56

Economic Downturn: DAX Corporations Make Significantly Less Profit

Economic crisis and fierce competition are affecting the largest German listed companies - and with the tariffs of US President Trump, the stress test is still to come. Especially one industry is suffering.
t-online
16. Mai 2025 um 07:18

Fewer Employed Persons at the Beginning of the Year

The number of employees in Germany decreased by 0.9% in the first quarter of 2023 compared to the previous quarter and by 0.1% compared to the previous year. This marks the second consecutive decline after the number of employees had previously been steadily rising. At the same time, however, more businesses with greater economic significance were established, with their number increasing by 11.4% compared to the previous year. Overall, these figures indicate economic stagnation, but also signs..
CW

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