Germany announces wave of mass layoffs
A wave of mass layoffs is rapidly spreading across Germany, with 88 companies planning to cut a total of 147,522 jobs, according to a study by the lobby organization Initiative Neue Soziale Marktwirtschaft (INSM), cited by Bild.
The cuts affect nearly all sectors, from automotive and logistics to mechanical engineering and IT. Major corporations are among the hardest hit: Deutsche Bahn plans to cut 30,000 jobs, while ZF intends to reduce its workforce by around 14,000.
INSM chairman Torsten Alslben criticized the economic policies of the current and previous governments, calling the situation a “failure.” He warned that “hundreds of thousands of jobs in German industry have already been lost,” and without decisive action by Chancellor Friedrich Merz, “we can forget about the economy called Germany.”
Experts cite excessive bureaucracy, high taxes, and a shortage of skilled workers as key drivers of the layoffs. FDP deputy chairman Wolfgang Kubicki also criticized the government, noting that “the only things growing right now are public debt and unemployment.”
In a related development, Germany plans to change its support system for Ukrainians who arrived after April 1, 2025, reclassifying them as asylum seekers, which is expected to reduce financial assistance.
