Germany faces mass layoffs as economic woes deepen
According to a report from the Economic Institute (IW), 38% of German companies plan to reduce their workforce by 2025. The challenging economic situation is influencing these pessimistic forecasts, with 40% of companies expecting a deterioration in business prospects.
10:39 AM EST, December 14, 2024
The German Economic Institute (IW) report reveals that 38% of over 2000 surveyed companies are planning layoffs in 2025. The weak economic situation is the main reason for these decisions. According to "Deutsche Welle," 40% of companies predict worsening business outlooks, while only 23% plan to increase investments.
Industry in crisis
The German economy remains stagnant, impacting the labor market. The continuous job growth observed since 2005 has come to an end. The industry, affected by a structural crisis, is experiencing a permanent loss of jobs. Many large companies such as VW, Ford, Bosch, ZF, and Thyssenkrupp have announced plans for mass layoffs.
The Kiel Institute for the World Economy (IfW) predicts stagnation in the German economy by 2025. In the fall, a growth of 0.5% was forecasted, and in the spring, 1.2%. For 2024, IfW predicts a recession of 0.2%.
Similarly pessimistic are the forecasts from the German Institute for Economic Research (DIW), which expects minimal GDP growth of 0.2% in 2025.
Layoffs in Germany
One of the largest reductions in staff is planned at Bosch. The layoffs could involve between 8,000 and 10,000 employees. According to "Automotive News Europe," this decision is in response to a slowdown in the automotive sector and decreased interest in automated driving technologies and steering assistance systems.
