Automakers can't help but acknowledge the global recession in their industry after a decade of growth. As a result, they are slashing payroll across the board, according to Bloomberg. Countries like China, the United Kingdom, Germany, Canada and the United States have all seen at least 38,000 job cuts over the last six months in the automotive sector. And this could just be the beginning of larger cuts to come.

Daimler CEO Dieter Zetsche said Wednesday that "sweeping cost reductions" are ahead to prepare for what he is calling "unprecedented" industry disruption.

Bank of America Merrill Lynch analyst John Murphy said: "The industry is right now staring down the barrel of what we think is going to be a significant downturn. The pace of decline in China is a real surprise."

Automakers are cutting shifts and closing factories across the world but the cost cutting goes beyond that. Salaried workers are also being cut, a surefire sign that slowing sales in both China and the US are taking their toll. Additionally, the slow down is coming at a time when automakers have deployed significant capital to invest in electric vehicles.