Record corporate profits coincide with job cuts in Germany and US
Major German and US companies posted record Q2 profits while labor income shares dropped and industrial job cuts continued.
Germany’s top listed companies and American corporations reported record corporate profits in the second quarter, even as labor market pressures mount across both regions.
An EY study showed Germany’s 40 DAX firms raised operating earnings by nearly 16 percent to 52.6 billion euros, driven by global business. However, domestic manufacturing and automotive sectors are cutting thousands of jobs. Business executive Nikolas Stihl warned that "in the good times Germany could afford the 35-hour workweek," adding "currently we can no longer do that."
Meanwhile, US pre-tax corporate profits rose to a record $4.8 trillion, equaling 18 percent of national income. In contrast, the worker share of national income dropped to 60 percent, the lowest level since the 1950s.
Sources: FAZ, Der Spiegel, Tagesschau, Der Standard.
How outlets assessed this
- Der Spiegel Critical Emphasized the sharp contrast between record corporate profits and simultaneous domestic workforce reductions.
- Tagesschau Neutral Analyzed how record top-tier earnings coexist with accelerating employment losses in key sectors like automotive.
- FAZ Cautious Highlighted business leaders arguing that Germany's traditional 35-hour workweek is no longer economically sustainable.
Sources
- FAZ — Business-Ticker: Unternehmer Stihl: 35-Stunden-Woche nicht mehr zeitgemäß
- Der Spiegel — Dax-Konzerne machen Rekordgeschäfte und streichen Jobs
- Tagesschau — Starke Geschäfte bei DAX-Konzernen - aber auch Stellenabbau
- Der Standard — US-Unternehmen erwirtschaften Rekordgewinne, Löhne verlieren an Gewicht
Earlier coverage
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- Oct 14, 2026, 10:00 AM UTCGerman home decor chain Depot cancels lease agreements
- Oct 14, 2026, 04:00 AM UTCGerman decor chain Depot terminates store leases to renegotiate terms
- Oct 13, 2026, 04:00 PM UTCGerman retailer Depot terminates leases to force renegotiations amid restructuring
- Sep 18, 2026, 08:00 AM UTCGerman officials hold talks with UniCredit over potential Commerzbank takeover
- Sep 15, 2026, 08:00 PM UTCGerman government meets UniCredit chief over Commerzbank takeover bid
- Sep 3, 2026, 11:00 PM UTCGerman DAX holds steady amid record earnings and job cuts
- Aug 28, 2026, 04:30 PM UTCGerman and US firms post record earnings despite employment pressures
- Aug 27, 2026, 10:30 AM UTCGerman DAX earnings reach record highs despite ongoing domestic job cuts
- Aug 25, 2026, 10:00 PM UTCDAX companies report record profits alongside domestic job cuts