Economic weakness causes job losses across Austria, the map shows
Austria is experiencing a wave of job cuts affecting several sectors in the country. According to the Momentum Institute, layoffs are no longer limited to specific companies or regions, but are spreading nationwide. The new "Jobs Minus" map shows that industrial centers, supplier companies, and service sectors are all facing significant reductions in personnel.
Major companies have announced significant layoffs. At the oil and gas company OMV, around 400 jobs will be cut from a total of 5,400. In Lower Austria, Schaeffler closed its plant in Berndorf after more than sixty years, affecting 450 employees. The steel industry is also under pressure, as voestalpine announced a reduction of 340 jobs at its sites in Kindberg and Mürzzuschlag in Styria, while Lenzing in Upper Austria is cutting 600 jobs due to the ongoing crisis.
The retail and services sectors are not immune to the crisis. Companies like Hofer, Amazon, and Unimarkt have also announced layoffs, showing that the downturn affects both large and small companies alike. Analysts from the Momentum Institute indicate that the problem is due to weak demand rather than production bottlenecks, which were the main issue during the supply chain crises in 2021 and 2022. Many companies are capable of production but are not receiving enough orders.
The situation in the services sector reflects industry trends, with about a quarter of companies indicating that weak demand is limiting their activities. Additionally, the shortage of employees, which was a major concern previously, has decreased, while financing issues remain but are less severe. According to Barbara Schuster, Deputy Chief Economist at the Momentum Institute, austerity programs, limited investments, and declining real income exacerbate the demand problem.
To address this decline, the Momentum Institute recommends targeted public investments to stimulate demand. Initiatives in infrastructure, energy, and climate transition projects—such as renovating public housing, upgrading thermal insulation, expanding energy networks, and additional solar energy systems—can support industries and reduce energy costs, creating jobs and stabilizing the Austrian economy in the long term.