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Dax corporations are making record sales and cutting jobs
Germany🏛️ PoliticsLean Progressive9 days ago

Dax corporations are making record sales and cutting jobs

Germany's largest publicly traded companies, known as DAX firms, reported record profits in the second quarter while simultaneously cutting thousands of jobs. According to a study by consulting firm EY, the combined operating profit (EBIT) of the 40 DAX companies rose by nearly 16% year-on-year to 52.6 billion euros, marking a new high for this period despite ongoing conflicts such as the Iran war and trade disputes with the US. Major contributors to this growth included Deutsche Telekom, Allianz, Volkswagen, and Siemens, with Bayer and Vonovia showing the strongest profit increases. The overall revenue reached 463 billion euros, up significantly. However, growth was concentrated in specific sectors like defense, artificial intelligence, and chemicals, which benefited from geopolitical tensions and supply chain issues. In contrast, traditional industries, particularly automotive, faced declining revenues and profits. BMW saw a 39% drop in operating profit, while Volkswagen and Daimler Truck experienced losses of around 9%. The job cuts were most pronounced in the automotive sector, with 3.49 million employees across all DAX companies as of June 30, representing a net loss of 41,000

Germany's largest corporations have recorded record profits while simultaneously reducing thousands of jobs, according to a comprehensive analysis by the auditing firm EY. The study, which examined data from the second quarter of 2026, revealed that the 40 companies listed on the DAX index collectively generated operating profits before interest and taxes (EBIT) of 52.6 billion euros, representing a 16 percent increase compared to the previous year’s second quarter. This marks the highest level of quarterly earnings ever recorded for the DAX firms, surpassing even the previous high set in 2024 by nearly 10 percent. Despite these impressive financial results, the situation is far more complex. While 29 of the 40 DAX-listed companies managed to increase their profits, 11 saw declines, with three of the four major German automakers among them. The growth was largely driven by a handful of industries benefiting from unusual market conditions. These include the defense sector, where Rheinmetall reported a 69 percent rise in revenue due to increased demand for military equipment. The company also expanded its workforce significantly, adding almost a quarter more employees within a year. The global boom in artificial intelligence and data centers has also contributed to higher revenues for firms providing components such as gas turbines and cooling systems. Additionally, chemical companies have benefited from supply chain disruptions caused by tensions in the Middle East, allowing them to raise prices. The insurance giant Allianz and telecommunications provider Deutsche Telekom led in terms of quarterly profits, with the latter reporting 6.9 billion euros, partly due to strong performance from its American subsidiary, T-Mobile US. However, the economic landscape in Germany itself remains challenging. EY’s chief in Germany, Henrik Ahlers, emphasized that the surge in profits is primarily occurring abroad rather than domestically. “Whoever looks only at the record sums might think the crisis is over, but the opposite is true,” he stated. Domestic demand remains weak, and many traditional industrial companies continue to struggle with structural issues such as high labor costs, low productivity, and intense international competition. The automotive industry, in particular, has been hit hard. Between July 2025 and July 2026, over 42,000 jobs were lost in this sector alone, representing nearly six percent of the total workforce. By June 30, 2026, the number of employed individuals in the German auto industry had dropped to 691,500, the lowest since 2005. The situation is even worse for suppliers, with some companies implementing stricter cost-cutting measures. For example, BMW announced plans to cut 8,000 positions, while Volkswagen Group is reportedly considering much larger numbers. Bosch aims to reduce up to 22,000 jobs globally, and ZF expects to eliminate 14,000 positions in Germany. Other manufacturing sectors have also experienced job losses, though at a slower pace. The machinery industry saw a 2.7 percent decline in employment, while the chemical industry reported a 3.6 percent drop and the metal products sector a 3.8 percent reduction. These figures highlight the ongoing impact of the so-called “China shock” on the German industrial base. The broader implications of this trend suggest that many large German companies have not yet completed their restructuring efforts. With rising administrative burdens, heightened geopolitical risks, new trade barriers, and persistently high operational costs in Germany, the challenges facing these firms remain substantial. Despite the current profitability, analysts warn that the gains are often tied to external factors rather than long-term competitive advantages. As such, the future outlook for many of these companies remains uncertain, especially in light of the continued pressure from foreign competitors and domestic economic constraints.

4 reports

Der Spiegel logoDer SpiegelIndependentProgressiveFactual 96Objective 949 days ago
Dax corporations are making record sales and cutting jobs

Germany's largest publicly traded companies, known as DAX firms, reported record profits in the second quarter while simultaneously cutting thousands of jobs. According to a study by consulting firm EY, the combined operating profit (EBIT) of the 40 DAX companies rose by nearly 16% year-on-year to 52.6 billion euros, marking a new high for this period despite ongoing conflicts such as the Iran war and trade disputes with the US. Major contributors to this growth included Deutsche Telekom, Allianz, Volkswagen, and Siemens, with Bayer and Vonovia showing the strongest profit increases. The overall revenue reached 463 billion euros, up significantly. However, growth was concentrated in specific sectors like defense, artificial intelligence, and chemicals, which benefited from geopolitical tensions and supply chain issues. In contrast, traditional industries, particularly automotive, faced declining revenues and profits. BMW saw a 39% drop in operating profit, while Volkswagen and Daimler Truck experienced losses of around 9%. The job cuts were most pronounced in the automotive sector, with 3.49 million employees across all DAX companies as of June 30, representing a net loss of 41,000

Bias read (Progressive): The article highlights the economic disparity between different sectors, emphasizing the decline in traditional industries like automotive and the rise in others such as defense and AI. While it presents factual data on corporate performance, the framing leans toward critiquing the impact of global/

Why factuality (96): The article accurately conveys the EY findings on DAX companies' record earnings, mentioning the 52.6 billion euro EBIT figure and the 16% increase. It also correctly notes the decline in automotive sector profits and the growth in defense and AI-related industries. These points are consistent with

Why objectivity (94): The article is highly objective, presenting the situation without favoring any particular perspective. It clearly outlines the contrast between growing sectors and struggling ones, using neutral language and providing context for the reported trends.

Frankfurter Allgemeine (FAZ) logoFrankfurter Allgemeine (FAZ)Independent🔒CenterFactual 95Objective 909 days ago
Corporations: record profits hit job losses in large German companies

Despite ongoing conflicts with Iran and trade tensions with the United States, several major German companies achieved record profits in the second quarter of 2025. According to a report by the auditing firm EY, the 40 DAX-listed companies generated combined operating profits (EBIT) of €52.6 billion, up nearly 16% compared to the same period last year. This marks the highest level of earnings recorded in a second quarter. However, this growth is unevenly distributed across industries, with some sectors like defense benefiting significantly from special economic conditions. While companies such as Rheinmetall saw substantial revenue increases and expanded their workforce, others, particularly in the automotive sector, faced declining profits and significant job cuts. The automobile industry alone lost over 42,000 jobs between July 2025 and July 2026, with employment numbers reaching their lowest since 2005. Meanwhile, companies like Allianz and Deutsche Telekom reported high profits, largely driven by their American subsidiaries. Despite these gains, experts warn that much of the growth is occurring abroad rather than domestically, and the situation remains fragile.

Bias read (Center): The article presents factual data on corporate performance and employment trends without overt ideological framing. It highlights both the financial success of large corporations and the challenges faced by certain sectors, including job losses in the automotive industry. The tone is neutral, citing

Why factuality (95): The article accurately reports the EY findings regarding the DAX companies' record earnings, citing specific figures like 52.6 billion euros in EBIT and the 16% increase compared to the previous year. It also mentions the growth in the defense industry and job increases at Rheinmetall. The data alig

Why objectivity (90): The article presents the information in a neutral manner, discussing both the record profits and the contrasting job cuts. It avoids overtly biased language and provides context about the industries driving growth while acknowledging the challenges faced by others.

Die Zeit logoDie ZeitIndependentCenterFactual 94Objective 939 days ago
Profit growth: Dax companies make record profits and cut jobs

Germany's largest stock market companies, known as Dax firms, achieved record profits in the second quarter of 2026 but simultaneously cut thousands of jobs. According to a study by the consulting firm EY, these companies increased their operating profit before interest and taxes (EBIT) by nearly 16 percent compared to the same period last year, reaching 52.6 billion euros. This marks the highest earnings ever recorded for a second quarter. The telecommunications company Deutsche Telekom reported the highest quarterly profit at 6.9 billion euros, followed by Allianz, Volkswagen, and Siemens. However, this growth is concentrated in a few sectors benefiting from special economic conditions, such as the defense industry, companies profiting from the AI boom, and chemical firms raising prices due to the Iran war and supply chain issues in Asia. In contrast, traditional industrial companies, especially those in the automotive sector, experienced declining revenue and profits. Overall, Dax companies employed 3.49 million people as of June 30, down 1.2 percent from the previous year, representing a reduction of 41,000 jobs.

Bias read (Center): The article presents factual data on corporate performance and employment trends without overtly favoring any political perspective. It highlights both the economic gains and job losses within specific industries, providing context on the factors influencing these changes. There is no evident bias,

Why factuality (94): The article accurately reports the EY study showing a 16% increase in EBIT for DAX companies and highlights the contrast between booming sectors like defense and the declining automotive industry. It includes specific examples such as Bayer and Vonovia having strong profit growth. This aligns with t

Why objectivity (93): The article remains objective, presenting the facts without bias. It discusses the record profits alongside the job cuts and identifies the sectors responsible for the growth, maintaining a neutral and informative tone throughout.

Tagesschau (ARD) logoTagesschau (ARD)State / PublicCenterFactual 92Objective 929 days ago
Strong business at DAX groups - but also job cuts

The article reports on the contrasting trends within DAX companies during the second quarter of 2026. While many industrial sectors, particularly the automotive industry, have seen significant job cuts, with over 42,000 positions lost in the first half of the year, the DAX companies as a whole recorded record profits. This is attributed to strong performance in specific sectors such as defense, artificial intelligence, and computing centers, which benefited from global demand surges. Additionally, chemical companies saw gains due to supply chain disruptions in Asia caused by tensions in the Middle East. Despite these successes, the overall labor market in Germany remains weak, with employment in manufacturing continuing to decline.

Bias read (Center): The article presents a balanced view of the economic situation, highlighting both the job losses and the financial success of DAX companies. It does not take a clear ideological stance but rather provides factual data and contextual analysis. The framing remains neutral, focusing on economic factors

Why factuality (92): The article accurately reflects the EY analysis of DAX companies' financial performance, including the 16% increase in EBIT and the decline in automotive sector profits. It cites the Statistisches Bundesamt for employment statistics and attributes the job losses to factors like competition from Chin

Why objectivity (92): The article maintains a balanced tone, presenting both the record profits and the job cuts without taking sides. It explains the reasons behind the job losses in the automotive industry and contrasts them with the success in other sectors, avoiding emotional or biased language.

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