Where jobs are being eliminated and where there are bright spots

Industry warnings Job cuts, Production relocations and a threatening one Deindustrialization are part of folklore in Austria. Recently, the supposed pessimism became increasingly serious.

The industry has been in the for more than two years recession. The mood darkens.

In a study published at the beginning of the year by management consultants Deloitte, four out of ten domestic companies stated that they had already moved their production or parts of it abroad or wanted to move it there in the next two to three years.

Unemployment rose sharply

This year, job cuts gained momentum not only in the automotive supply industry. In October there were almost at the AMS 25.000 People in the manufacturing sector reported unemployed. A plus of almost 19 percent compared to the same period last year.

Due to the German crisis Automotive industry were Suppliers particularly affected.

• At Magna In Graz, after 450 job cuts were announced in 2023, another 500 employees had to leave this year. An additional 200 were released in Lannach.
• Also AVL List cut 200 jobs in Graz.
• At Steyr Automotive In Upper Austria, 200 employees were registered for dismissal in July, and 260 had to leave in 2023.
• The German supplier finally set the temporary end point Schaeffler, who wants to cut 450 jobs in Berndorf.

Bloodletting also occurred in other sectors.

• The circuit board manufacturer AT&S is cutting 250 jobs in Leoben and Fehring.
• At Infineon 380 jobs will be lost in Villach.
• At the sensor manufacturer Ams-Osram 50 employees in Premstätten have to leave. The jobs are to be outsourced to Asia.
• Also at the aluminum manufacturer Hammerer 100 jobs will be lost in the Innviertel.
• At the solar company Fronius the decline of the PV boom will cost 800 jobs.

The last Mozartkugel rolls into the Salzach next week Salzburg chocolate from the conveyor belt. The factory will close at the end of the year after 127 years. The owner Mondelez no longer wants to have the specialty from Mozart’s city manufactured in Austria in the future.

There are also bright spots

The Upper Austrian aircraft supplier FACC has recently enjoyed strong growth. The order books are full and sales increased by a quarter to more than 640 million euros. Profits quadrupled to almost 21 million. FACC also complains about location disadvantages. The aim is to reduce the high costs with digitalization measures. The reduction of employees is “not an issue at all,” says a spokesman.

Also the Upper Austrian industrial group Issues has recently made strong gains. In the financial year that ended in April, sales rose by almost ten percent to more than 1.2 billion euros. There was particularly strong growth in wind energy and e-mobility. New plants are being built in China and Mexico. A training and further education center for apprentices is to be built at the company headquarters in Laakirchen.

Also the fire department outfitter Rosenbauer recently grew strongly. Operationally, Rosenbauer returned to profitability after losses in the previous year. The number of employees in Austria increased slightly. The fact that the future co-owner Stefan Pierer, who recently took over a majority stake together with Red Bull heir Mark Mateschitz, went bankrupt with KTM should have no consequences. The transaction is finalized. It is said that this will have no impact on the planned capital increase at Rosenbauer.