Outplacement in the automotive industry
As the car industry reinvents itself: what structural change means for specialists and executives — and how a defensive job search becomes an active career decision.
The change in figures
- −19 %
- car production in Germany vs. 2019 (Jan–May 2026)
- 54 %
- of surveyed suppliers are cutting jobs
- 64 %
- of those in administrative & overhead functions
- 44 %
- are relocating jobs abroad
Sources: VDA, German passenger-car production statistics (2026).
The German automotive industry is undergoing a profound transformation. It has long ceased to be solely about the switch from the combustion engine to the electric drivetrain.
The entire value chain is changing: vehicles are becoming more software-based, production processes more automated, development cycles shorter and supply chains more international. At the same time, German manufacturers and suppliers are under considerable cost and competitive pressure.
In the first five months of 2026, German passenger-car production was still 19% below the 2019 level. At the same time, production of electric vehicles is growing: for 2026, the VDA expects a further increase in domestic electric-car production.
So the automotive industry is not disappearing. It is changing. And that is precisely what is decisive for the careers of specialists and executives.
Structural change does not automatically mean the end of a career
Anyone affected by job cuts often experiences the situation as a rupture at first: “My position no longer exists. What do I do now?”
The strategically more important question, however, is: “Which of my competencies are still needed in the new world of work — and in which companies?”
A job title is always tied to a specific organisational model. The underlying competencies, by contrast, can be applied far more broadly.
- A former Head of Automotive Purchasing, for example, brings experience in global supplier management, cost optimisation, negotiation, risk management and working capital.
- A Production Manager has expertise in lean management, site development, automation, quality management and international leadership.
- A Head of Development often has decades of experience in complex development projects, interdisciplinary leadership and technological transformation.
The decisive step is to decouple this experience from the previous industry and function without losing its substance.
Where job cuts are most visible
Job cuts affect more than just classic production roles. A recent VDA survey of small and mid-sized automotive companies shows how broadly the change now reaches: 54% of the companies surveyed are currently cutting jobs. Of those reducing headcount, 64% are cutting administrative and overhead functions, 54% production-related activities and a notable 36% also development- and innovation-related activities. At the same time, 44% of the companies cutting jobs in Germany are relocating employment abroad.
It is not only production that is changing. Classic knowledge and management functions are being reorganised too. Added to this is the growing importance of software, artificial intelligence, electronics and data-based business models. The VDA sees Germany as a development location under particular pressure and points to the relocation of development activities to international sales markets.
Which profiles are most in demand?
The decisive question is therefore not “Which jobs are disappearing?” but rather: “Which skills are gaining value in the new automotive ecosystem?” Particularly relevant are, among others:
- digitalisation and software
- electromobility and battery systems
- electronics and semiconductors
- automation and robotics
- artificial intelligence
- supply-chain transformation
- cost and efficiency programmes
- restructuring
- international site steering
- sustainability and decarbonisation
- change management
- strategic transformation
For experienced specialists and executives this means: those who can combine their existing experience with new topics often have better prospects than someone who markets only their previous job title.
Your market value is greater than your job title
This is perhaps the most important thought for people affected by a restructuring. Take an example: a “Director Operations Automotive”.
A conventional job search might target positions such as Director Operations Automotive, Head of Production Automotive or Plant Manager Automotive. That keeps the search entirely within the very market segment that is currently transforming itself.
A professional assessment, by contrast, could make other competencies visible — for instance in operations leadership: transformation, lean management, site development, automation, cost optimisation, international leadership and change management. From this, additional target markets emerge: mechanical engineering, automation, medical technology, energy, logistics, industrial companies and technical services.
The question thus shifts from “Who is looking for an automotive operations manager?” to “Which companies need an experienced transformation manager with international operations expertise?” — a completely different labour market.
A different logic applies to executives
For specialists, professional continuity is often the most important factor. For executives, the perspective shifts. Here, questions like these increasingly matter:
- Which changes have I already shaped successfully?
- What responsibility have I taken on?
- Which organisations have I developed?
- Which results have I achieved?
- Which crises and restructurings have I mastered?
- How large were my teams and budgets?
- What international experience do I bring?
- Which transformations can I credibly lead?
An executive should therefore not position themselves solely as an industry expert. The stronger positioning is often: “Which problems can I solve for a company?” Particularly for a top manager, that can make the difference. A former automotive CFO, for example, is not exclusively an “automotive CFO”. They can equally be a transformation CFO, a restructuring CFO, an international finance manager or a growth and performance manager — provided their actual experience supports that positioning.
Do you have to change industry?
Not necessarily. Changing industry is an option, not an obligation. For some candidates it makes sense to stay within the existing ecosystem and move, for example, from an OEM to a supplier, an engineering service provider or a technology company. For others, now is exactly the right time to leave the previous industry logic behind.
A simple orientation for which experience can lead into which new target markets:
| Previous experience | Conceivable new target markets |
|---|---|
| Automotive operations | mechanical engineering, automation, energy |
| Automotive purchasing | industry, logistics, energy |
| Automotive engineering | medtech, electronics, mobility |
| Quality management | medtech, mechanical engineering, pharma |
| Supply chain | retail, logistics, industry |
| Transformation | cross-industry |
| Finance / controlling | cross-industry |
| HR / change | cross-industry |
| Automotive sales | technical B2B industries |
| Production | mechanical engineering, medtech, energy |
The higher the position, the more the search should be led by competencies, responsibility and impact rather than by the previous industry label.
What affected professionals should do now
Anyone affected by job cuts should not immediately start sending out as many applications as possible. A structured approach is more effective:
- Assess where you stand. What are my actual competencies? Not just “What have I done?”, but “What am I demonstrably very good at?”
- Analyse your market value. Which of these competencies are sought after in other companies and industries?
- Develop a new positioning. What professional story should a potential employer understand about me?
- Define target markets. Which 20, 30 or 50 companies are genuinely of interest?
- Open up the hidden job market. Especially for executives, many relevant options do not arise through classic job advertisements. Networking, executive search, personal contacts, direct approaches and referrals gain importance — the core of our KARENT PLACEMENT approach.
What professional outplacement consulting can achieve
A professional transition after a restructuring is not only a question of applying. It is first and foremost a question of positioning. Professional outplacement helps to develop a convincing perspective for the next career step out of your existing career. This includes, for example:
- Assessment — which competencies, experiences and successes make up your actual market value?
- Positioning — how can this market value be formulated concisely for the next employer?
- Target-market analysis — which industries, companies and functions fit your personal situation and desired next step?
- Application and executive strategy — which routes are genuinely promising at the respective hierarchy level?
- Personal brand — how should your profile be presented on LinkedIn, in your CV and in conversation?
- Network strategy — how can relevant contacts be activated systematically and new ones built?
- Interview preparation — how can you explain your career, a job loss or a restructuring confidently and positively?
The most important change of perspective
Job cuts can represent a professional turning point. But they need not be the end of a professional development. Especially in a phase in which entire industries are changing, it can make sense not to tie your career to a specific function or a specific employer.
Which of my experiences will still have value in the next economic cycle?
Those who answer this question early can turn a defensive job search into an active career decision. The automotive industry is changing — that does not mean experienced specialists and executives are worth less. Rather, it means their value may need to be redescribed, repositioned and made visible in a different context.
Frequently asked questions
- What does the automotive industry's structural change mean for my career?
- The change (electromobility, software, cost pressure, relocations) reshapes functions and organisations — not only in production, but also in administration, development and management. For specialists and executives this does not automatically mean the end of a career: what matters is which competencies are still needed in the new world of work, and in which companies.
- After job cuts in the automotive sector, do I have to change industry?
- No. Changing industry is an option, not an obligation. For some, a move within the ecosystem makes sense (e.g. from an OEM to a supplier, engineering service provider or technology company); for others, it is the right time to leave the previous industry logic behind. The higher the position, the more the search should be led by competencies rather than by the industry label.
- How do I find out which of my competencies are in demand outside the automotive industry?
- It starts with a professional assessment: competencies, experiences and successes are decoupled from the previous job title and formulated as transferable market value. This is followed by a target-market analysis — which industries and companies are looking for these skills. This is exactly where professional outplacement comes in.
- What exactly does outplacement do for automotive specialists and executives?
- Outplacement supports the transition from assessment through positioning, target-market analysis and application/executive strategy to personal brand, network strategy and interview preparation. Especially for executives, many options arise via the hidden job market — networking, direct approaches and referrals rather than classic job advertisements.
