Quick Takeaways
- Europe’s auto supplier workforce is shrinking at an unprecedented pace as cost pressure and weak demand collide.
- Policy support and smarter regulation will determine whether the region can still lead the next wave of vehicle technologies.
On January 14, the CLEPA European auto supplier job cuts became a major warning sign for the region’s industrial future, as the European Association of Automotive Suppliers revealed that the sector will eliminate 104,000 jobs across 2024 and 2025. This scale of workforce reduction now exceeds even the losses seen during the COVID period.
The data shows that European automotive suppliers are cutting an average of 142 jobs every single day across the two-year period, reflecting intense pressure from weak demand, rising costs, and structural changes within the mobility ecosystem.
CLEPA European Auto Supplier Job Cuts highlight 2025 impact
In 2025 alone, the industry announced 50,000 job losses, adding to the 54,000 positions already cut during 2024. These figures underline how rapidly the supplier ecosystem is shrinking despite continued demand for advanced vehicle technologies.
Only 7,000 new jobs were announced during 2025, which is a fraction of what is being lost and highlights the widening gap between employment destruction and limited hiring across the European automotive supply chain.
Key workforce figures from CLEPA
These numbers make it clear that Europe’s supplier base is under severe stress at a time when the industry is expected to invest heavily in electrification, software, and new manufacturing technologies.
Policy response to CLEPA European Auto Supplier Job Cuts
The European Commission has taken an initial step through its Automotive Package, which introduces more flexible technology pathways and local content provisions. These measures aim to support suppliers as they navigate the transition to new mobility technologies.
However, CLEPA has stressed that further action is essential. High energy prices and heavy administrative burdens continue to undermine the competitiveness of European manufacturing, making it harder for suppliers to retain production and employment within the region.
What suppliers need from EU policy
To prevent deeper industrial erosion, targeted actions are required, including:
The upcoming Industrial Accelerator Act is expected to play a central role. Its local content requirements could help strengthen Europe’s automotive value chain, but only if they are designed to reinforce domestic manufacturing rather than create additional compliance barriers.
If these measures fail to deliver meaningful relief, the pace of CLEPA European auto supplier job cuts could accelerate further, threatening Europe’s position as a global automotive production hub and weakening its ability to lead in next-generation vehicle technologies.
The data shows that European automotive suppliers are cutting an average of 142 jobs every single day across the two-year period, reflecting intense pressure from weak demand, rising costs, and structural changes within the mobility ecosystem.
CLEPA European Auto Supplier Job Cuts highlight 2025 impact
In 2025 alone, the industry announced 50,000 job losses, adding to the 54,000 positions already cut during 2024. These figures underline how rapidly the supplier ecosystem is shrinking despite continued demand for advanced vehicle technologies.
Only 7,000 new jobs were announced during 2025, which is a fraction of what is being lost and highlights the widening gap between employment destruction and limited hiring across the European automotive supply chain.
Key workforce figures from CLEPA
- Total job cuts in 2024–2025: 104,000
- Job losses announced in 2024: 54,000
- Job losses announced in 2025: 50,000
- New jobs announced in 2025: 7,000
- Average daily job losses: 142
These numbers make it clear that Europe’s supplier base is under severe stress at a time when the industry is expected to invest heavily in electrification, software, and new manufacturing technologies.
Policy response to CLEPA European Auto Supplier Job Cuts
The European Commission has taken an initial step through its Automotive Package, which introduces more flexible technology pathways and local content provisions. These measures aim to support suppliers as they navigate the transition to new mobility technologies.
However, CLEPA has stressed that further action is essential. High energy prices and heavy administrative burdens continue to undermine the competitiveness of European manufacturing, making it harder for suppliers to retain production and employment within the region.
What suppliers need from EU policy
To prevent deeper industrial erosion, targeted actions are required, including:
- Lowering industrial energy costs to improve cost competitiveness
- Reducing regulatory and administrative complexity
- Protecting critical production capacities inside Europe
- Ensuring local content rules support, not hinder, supplier investment
The upcoming Industrial Accelerator Act is expected to play a central role. Its local content requirements could help strengthen Europe’s automotive value chain, but only if they are designed to reinforce domestic manufacturing rather than create additional compliance barriers.
If these measures fail to deliver meaningful relief, the pace of CLEPA European auto supplier job cuts could accelerate further, threatening Europe’s position as a global automotive production hub and weakening its ability to lead in next-generation vehicle technologies.
Industry reports & Public Disclosures | GIA Analysis
Click above to visit the official source.
Share: