German companies brace for mass layoffs amid economic slump
According to the Economic Institute (IW) report, 38% of German companies plan to reduce their workforce in 2025. The weak economic situation is influencing pessimistic forecasts, with 40% of companies expecting a decline in business prospects.
The German Economic Institute (IW) report reveals that 38% of over 2,000 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 foresee a worsening business outlook, and only 23% plan to increase investments.
Industry in crisis
The German economy remains stagnant, impacting the labour market. The sustained job growth observed since 2005 has ended. Industries, affected by a structural crisis, are 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 of the German economy in 2025. In the fall, a growth of 0.5% was forecasted, and in the spring, 1.2%. For 2024, IfW anticipates a recession of 0.2%.
Similarly pessimistic are the forecasts of 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.
