German companies are planning record cuts since the pandemic crisis

Businesses in Germany plan to lay off 37.7 thousand people in the first half of 2025, the highest level since the crisis caused by the COVID-19 pandemic. Such conclusions follow on July 2 from the data of the European Restructuring Monitoring.

As estimated by RIA Novosti, the number of people who fall under the cuts is growing in Germany for the third year in a row. For example, at the beginning of 2022, the business planned to lay off about 9.6 thousand specialists. However, this year this figure has reached 37.7 thousand, and since 2020 this is the largest figure.

28 enterprises reported the reduction of workers in the industry, nine of which are suppliers for the automotive industry or automakers. Corporations plan to lay off 20.7 thousand specialists.

In addition, two companies from the logistics sector intend to reduce 8.2 thousand people, nine organizations from the trade sector — 4.5 thousand people, one bank — 3.3 thousand. At the same time, it is noted that in the field of healthcare, electric power, construction and media, the cuts will affect about 1 thousand people.

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The Bild newspaper reported on June 3 that about 20 thousand employees of the German automobile concern Volkswagen AG agreed to be dismissed in connection with the cost-cutting package adopted by the plant. It was clarified that 2/3 of the dismissed employees will retire, while all those who have left will receive severance pay depending on their length of service. In some cases, the amount can be up to 400,000 euros (about $456,000).