Wave of layoffs grows: Thousands to be left unemployed

As economic growth in Europe slows and geopolitical risks rise, major companies are being forced to cut costs, and a wave of layoffs is growing rapidly across the continent. Giant companies operating in sectors such as automotive, finance, engineering, retail, and telecommunications have begun laying off thousands of employees in addition to freezing hiring.

WHY ARE LAYOFFS INCREASING?

The European economy is experiencing a serious contraction due to reasons such as global recession concerns, low-cost production competition from China, inflationary pressures, and weak demand. While the automotive and industrial sectors, in particular, are going through difficult times due to supply-demand imbalances, the banking sector is also downsizing due to rising interest rates and fluctuating market conditions.

According to European Union (EU) data, 2.3 million manufacturing jobs were lost on the continent between 2008 and 2023. Nearly 1 million of these job losses have occurred just since 2019. Experts estimate that the actual job loss could reach 4.3 million due to flexible working models and short-term employment contracts.

Unions and labor rights advocates state that industrial policies in Europe remain insufficient and are calling on governments to stop mandatory layoffs.

IN WHICH SECTORS HAVE LAYOFFS GAINED MOMENTUM?

Across the continent, layoffs are increasing rapidly in many fields, primarily in the automotive, banking, engineering, retail, and energy sectors. Here are some of the major companies that have made headlines with layoffs:

Automotive Sector

Volkswagen Group: Its luxury brand Audi announced it would lay off 7,500 people in Germany. Volkswagen also plans to part ways with 1,600 employees in its Cariad software unit.

Porsche: Plans to lay off 3,900 people and will begin negotiations with unions for further layoffs in the second half of 2025.

Schaeffler: Is laying off 4,700 people in Europe, 2,800 of which will take place in Germany.

Continental: 3,000 jobs in the research and development department will be terminated by 2026.

Bosch: 5,500 people will be laid off worldwide in its automotive unit, 3,800 of whom are in Germany.

Renault: Announced it would part ways with 300 employees at its Sandouville van factory in France.

Banking Sector

Commerzbank (Germany): 3,900 people will be laid off by 2028.

Banco Santander UK: May lay off 750 people with new branch closures.

Deutsche Bank: After a downsizing of 3,500 people, it announced it would lay off another 2,000 people this year.

Engineering and Industrial Sector

Siemens: Announced it would lay off more than 6,000 people by 2027.

ThyssenKrupp: 5,000 people will be laid off by 2030. Additionally, the company plans to lay off another 6,000 people by selling some business activities or transferring them to external service providers.

ThyssenKrupp Automotive Division: Another 1,800 people will be laid off.

Retail Sector

Puma (Germany): Will lay off 500 people.

Tesco (UK): Is laying off 400 employees.

Sainsbury’s (UK): Announced it would lay off more than 3,000 employees.

LAYOFFS IN OTHER SECTORS 

Akzonobel (Netherlands): Will lay off 2,200 employees.

BioNTech (Germany): Plans to close 950 to 1,350 full-time positions.

DHL (Germany): 8,000 jobs will be terminated.

BP (UK): Will lay off 4,700 employees.

Neste (Finland): Will lay off 600 employees.

Tele2 (Sweden): Will lay off 600 employees.

UPM (Finland): Will lay off 462 employees.

EUROPEAN WORKFORCE IN CRISIS 

The growing wave of layoffs across Europe reveals the devastating effects of global economic stagnation and sectoral changes on the workforce. While labor unions and economic experts argue that governments need to review their industrial policies, it is predicted that the employment market on the continent could shrink further in the coming years.