German economy faces layoffs amid looming industrial crisis
According to the Economic Institute (IW) report, 38% of German companies plan to reduce their workforce in 2025. The weak economic situation is leading to pessimistic forecasts, with 40% of companies expecting a deterioration in business prospects.
The German Economic Institute (IW) report reveals that 38% of over 2,000 surveyed companies are planning redundancies in 2025. The weak economic situation is the main reason for these decisions. According to "Deutsche Welle", 40% of companies predict worsening business outlooks, and only 23% plan to increase investments.
industry in crisis
The German economy remains stagnant, impacting the labour 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 significant redundancies.
The Kiel Institute for the World Economy (IfW) predicts stagnation of the German economy in 2025. In the autumn, a growth of 0.5% was forecast, and in the spring, 1.2%. For 2024, IfW predicts a recession of 0.2%.
Equally pessimistic are the forecasts of the German Institute for Economic Research (DIW), which expects minimal GDP growth of 0.2% in 2025.
Redundancies in Germany
One of the largest staff reductions is planned at Bosch. The redundancies could involve between 8,000 and 10,000 employees. According to "Automotive News Europe", this decision is a response to a slowdown in the automotive sector and decreased interest in automated driving technologies and steering assistance systems.
