The paper is aiming to discuss the role of deindustrialization in generating socio-economic dislocation at regional level. The change of industry along the way from the centrally-planned to market oriented economy, while redefining the spatial patterns of growth and decline, has combined with emergent forms of social and economic inequality. The specific aims of the paper are twofold. First, having the privilege of a two and a half-decade long perspective, the paper looks back at the period of deindustrialization, pinpointing the successive waves of employment decline in the wider context of the extensive process of economic restructuring. Second, using methods of spatial analysis, the paper examines the new distribution pattern of industrial change in the Danube region, specifying in empirical terms the relation with evolutionary trends and regional specialization. The findings pinpoint at the consequences of the far-reaching deindustrialization process on the regional economic base of the Danube towns.