German blue chips post record earnings amid continuing domestic job cuts

Germany's leading listed corporations generated record operating profits in the second quarter even as domestic industrial employment continued to decline, according to an analysis by consultancy EY. Combined earnings before interest and taxes across the 40 DAX companies rose nearly 16 percent year-on-year to 52.6 billion euros.

Despite robust corporate financial performance, payroll reductions persisted across key manufacturing sectors, notably automotive production, where headcount dropped to 691,500 by mid-year. The divergence between strong balance sheets and domestic layoffs has intensified debates over German competitiveness, with industrial leaders questioning the viability of standard 35-hour workweeks. Compounding concerns over wider economic momentum, international labor markets also signaled cooling conditions, highlighted by unexpected monthly job losses in the United States.

Sources: Der Spiegel, Die Zeit, FAZ, Tagesschau.