Many Styrians tremble

Crisis in the car industry leaves thousands of jobs shaky

200 jobs will be cut at Magna-Powertrain.

(Bild: Jauschowetz Christian/Christian Jauschowetz)

The crisis in the automotive industry is hitting Styria with full force. At Magna in Graz, 1000 jobs have been cut in the last twelve months, and now the plant in Lannach has also been hit. No improvement in sight. 

More than 40,000 people are employed in the automotive industry in Styria - many of them will probably have slept better. After all, the crisis that has gripped the entire industry for years is also affecting local companies. As reported, the nightmare of many employees has become reality for 200 people at Magna Powertrain in Lannach. They were informed of their imminent dismissal on Monday (110 employees, 90 workers).

AMS expects further redundancies
In addition to the redundancies, there were reportedly also "salary adjustments" - whether these measures will be enough and the remaining 2,300 employees in Lannach will now have their jobs safe is currently up in the air. "The fact is that we will certainly have to expect staff reductions in the automotive industry well into 2025," explains AMS Regional Managing Director Karl-Heinz Snobe.

New orders essential for survival
At Magna-Steyr in Graz, 1000 jobs have already been cut in the last twelve months. If the company does not succeed in landing new orders by the end of the year, there will be further cuts. Magna did not want to confirm a social plan for an additional 1500 employees. The fact is, however, that the Jaguar orders in Graz will expire, followed by those from BMW and Toyota at the beginning of 2026. Only Mercedes still has a longer contract for the G-Class (2029).

Foundation for employees stands: Karl-Heinz Snobe (AMS), Provincial Councillor Doris Kampus and Norbert Schunko (GPA/from left).

(Bild: Jörg Schwaiger)

Foundation for 500 employees
For Norbert Schunko, Managing Director of GPA Steiermark, it is therefore clear "that we can only solve this situation together". According to the office of Social Affairs Minister Doris Kampus (SPÖ), a foundation for affected employees, financed by the state, Magna and AMS, has already been set up - for a maximum of 500 people. For Snobe, this is currently sufficient. "Because of the 1,500 people who have been made redundant in the industry in the last twelve months, 200 or 300 have joined us and the rest are back in work."

However, the expert also knows that redundancies at Magna naturally have a delayed impact on its suppliers. 

Barbara Eibinger-Miedl (ÖVP), State Councillor for Economic Affairs.

(Bild: Jauschowetz Christian/Christian Jauschowetz)

Barbara Eibinger Miedl (ÖVP), State Councillor for Economic Affairs, refers to the job exchange of the ACstyria mobility cluster. There are currently 127 vacancies online. Since June, the "Styria Bonus" has also been supporting R&D projects by large Styrian companies. "Domestic companies are well positioned in terms of technological change, but the demand for European cars has fallen," says Eibinger-Miedl. "Styria as a mobility location is characterized by its high innovative strength and excellently qualified employees. I am therefore confident that employment in the automotive sector can also develop positively again."