There are many reasons for this development. External shocks such as the strong franc, US tariffs and declining demand in China have been hitting Swiss industry with full force since spring 2025. In the machinery and technology base, incoming orders and production capacities are slumping noticeably. According to Swissmem, the order volume of the MEM industries fell by over 13 per cent in the second quarter, and industry turnover has fallen for nine consecutive quarters. Swiss companies’ dependence on exports makes them particularly vulnerable, as competitors in the EU pay significantly lower customs duties
Job cuts among the big players and the consequences
Sika is cutting 1,500 jobs worldwide, mainly in the construction sector and production sites in China. The restructuring is a reaction to double-digit sales losses and a weakening construction market. At the same time, Sika is focusing on investments in digitalisation and automation
Kühne Nagel also announced up to 1,500 job losses following a slump in profits and pressure on margins. The market is heavily burdened by overcapacity and US tariffs. Efficiency improvements and automation are leading to the loss of many logistics jobs
SFS Group cuts 110 jobs with the closure of the Flawil plant. The dramatic slump in the automotive industry, the switch to electromobility and competitive pressure from Asia lead to the relocation of production and the reduction of skilled assembly jobs
Schindler rationalised 1,200 jobs in the third quarter because the global new installations business for lifts, particularly in China, collapsed. This resulted in rationalisations in the back office and production
Other industry giants such as Rieter (mechanical engineering) and Helvetia (insurance) are also reporting hundreds of impending job losses, often citing declining orders and relocation abroad
Blue-collar jobs and the risk of a location crisis
Classic blue-collar jobs – i.e. jobs in production, assembly, logistics or maintenance – are particularly affected. Technology-driven rationalisation, the switch to electromobility in the automotive sector and efficiency programmes in logistics and back office are causing processes to be relocated abroad or automated. According to surveys, more than one in three CFOs in Switzerland currently expects further job cuts in their own company
The consequences extend far beyond individual companies. Regionally, there is a threat of the desertification of industrial locations, social decline scenarios and risks to social stability. Labour market researchers also warn that even the strong pharmaceutical industry may not be spared further waves of rationalisation.
Society and politics in dialogue
Public discussions and economic forums are struggling to find answers. Location promotion, targeted further training and qualifications, accompanying socio-political measures and innovation promotion are the key issues. This is because the downsizing is an expression of a twofold structural change. It is the result of a fluctuating global economy, but also of the rapid progress of digitalisation and AI, and will not be solved by pure market logic.