German fibre-optic giant Soli declares bankruptcy, 700 jobs at risk
An important company responsible for the expansion of the fibre-optic network in Germany has found itself in a difficult financial situation and has filed for bankruptcy. 700 people across the country are set to lose their jobs.
In May this year, Soli Infratechnik GmbH filed for bankruptcy at the District Court in Hannover, as reported by the German portal "LokalPlus".
German company files for bankruptcy; 700 Germans may lose their jobs
The company is involved in planning and constructing fibre-optic infrastructure throughout Germany. It is one of the largest of its kind across the River Oder. Soli cites "delays in the execution of already commissioned projects" and supply chain issues as the cause of its financial troubles. According to German media, rising material and staffing costs also contributed to the bankruptcy.
The company's revenues were €135.5 million last year. "As a result of the bankruptcy, 700 employees are at risk across 12 locations. The company, however, is trying to ensure the continuity of current operations and find a financial solution for the firm," reads the portal.
An attempt at restructuring undertaken last year failed, according to bankruptcy administrator lawyer Silvio Höfer.
Soli Infratechnik GmbH is currently seeking an investor.
Layoffs in Germany
As the reports say, the German economy is in decline, as evidenced by numerous indicators. Since the beginning of the year, many companies have decided to cut several tens of thousands of jobs. The reasons for layoffs in Germany include high energy and labour costs and economic transformation.
One of the sectors most affected by job cuts is the automotive industry. ZF, a leading supplier of automotive components headquartered in Friedrichshafen, has announced plans to close two factories and eliminate as many as 12,000 jobs, constituting about 25% of the company's total employment in Germany. The reason is cost-cutting measures. According to media reports, ZF intends to relocate part of its research and development and production activities to countries with lower labour costs, such as Eastern European countries, India, or China.
Continental, a Hannover-based tyre manufacturer, announced the layoff of over 7,000 employees by 2025 as part of its savings programme. The goal is to reduce annual costs by around €400 million, approximately £345 million.
Meanwhile, Bosch, the world's largest supplier of automotive parts headquartered in Gerlingen, will cut 4,000 jobs. The shift towards electromobility forces the company into deep restructuring, and talks with trade unions have already started.
