As of: February 25, 2024, 6:55 a.m
By: Bona Hyun
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German companies are under pressure.
Numerous corporations have recently announced austerity programs.
This has serious consequences for employees.
Berlin – Weak economy, stubborn inflation, high interest rates and rising energy prices: These are tough times for companies.
Many leading companies in Germany are cutting jobs.
Thousands of employees, some of them highly qualified, are apparently no longer needed - even though there is a shortage of skilled workers everywhere.
Major job cuts in Germany – thousands of employees affected by restructuring at SAP
Europe's largest software manufacturer SAP wants to promote business with artificial intelligence (AI) with a major restructuring.
Due to the renovation, around 8,000 employees will be cut.
The company had already cut 3,000 jobs around a year ago in order to become leaner and to concentrate more on the core business of software for corporate management.
More and more German companies are cutting jobs.
© Bihlmayerfotografie/imago
“We are now entering the next phase of transformation,” said CEO Christian Klein to
tagesschau.de
in an article from January 24, 2024).
With the restructuring, SAP is increasing its investments in strategic growth areas, primarily in artificial intelligence (AI).
By the end of 2025, SAP will invest almost one billion euros in this area.
Job cuts in Germany: Fewer people are needed in the automotive industry
Auto supplier Bosch
is currently planning to cut around 3,700 jobs.
The reason is the increasing cost pressure and uncertain prospects in the autonomous driving business.
This has been announced in several rounds since December.
1,500 jobs will be lost in the drive division, 1,200 in the autonomous cars department, 500 in control devices and 560 in the home improvement and gardening department, reports
focus.
The headquarters in Leinfelden as well as the locations in Ansbach, Reutlingen, Salzgitter and Schwieberdingen are affected.
Nobody should be laid off; positions should simply not be advertised when there are changes in personnel.
There have recently been gloomy forecasts for employees in the automotive supply industry, in which almost 270,000 of the total of around 780,000 employees currently work.
“The approximately 310,000 employees in 2018 and 2019 are history,” said Frank Schwope, lecturer in automotive economics at the FHM Hannover University, to the
Automobilwoche
magazine .
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In Germany, fewer and fewer cars are being produced.
After peaking at 5.7 million vehicles in 2016, the number fell from 4.7 million in 2019 to 4.1 million last year.
And the prospects aren't getting any better.
The Association of the Automotive Industry (VDA) predicts that domestic production will stagnate at 4.1 million cars in 2024.
Deutsche Bank wants to cut over 3,000 jobs despite declining profits
Bayer AG is pushing ahead with restructuring and job cuts in Germany and has already decided on a plan to cut jobs by the end of 2025.
How many jobs are involved was not communicated.
The chemical and pharmaceutical giant employs 22,000 people in Germany and around 100,000 worldwide.
The affected employees are being offered high levels of severance pay and early retirement.
Despite better business, Deutsche Bank ultimately earned less last year than the year before.
Now Germany's largest financial institution is planning further savings and wants to cut 3,500 jobs, as it announced today.
The surplus attributable to the shareholders of the DAX group in 2023 was a good 4.2 billion euros, 16 percent below the previous year's level.
Job cuts at Miele: Company has to cut 2,000 jobs
The job cuts at the flagship company Miele also caused a great uproar.
The savings plans at Miele, which
Manager Magazine
initially reported exclusively on, have now also been communicated to the washing machine manufacturer's workforce.
The “global efficiency program” will affect up to 2,700 of the company's 23,000 jobs worldwide, as Miele announced in mid-February 2024.
In addition to the 2,000 jobs that would be cut anyway, another 700 jobs are to be relocated to other locations, it is said.
A significant part of the restructuring also concerns the relocation of washing machine production to the Polish factory in Ksawerów from 2027.
Germany is apparently becoming less attractive as a business location
It's not just the increasing job cuts that could be causing concern for the economy.
Apparently Germany is becoming less attractive as a business location.
The solar company Meyer Burger recently stopped producing modules in Germany.
According to a survey by the ifo Institute (Leibniz Institute for Economic Research) on behalf of the Family Business Foundation, 57 percent of the companies surveyed are preparing to postpone planned investments (as of 2022).
Almost one in ten companies say they plan to relocate operations abroad.
Rainer Kirchdörfer, board member of the Family Business Foundation, described the results as an “alarm signal”.
There has been a gradual shift in industrial value creation for some time now.
“This fatal development in Germany is accelerating.
Companies are reducing production in Germany or relocating their production to where energy costs, taxes and bureaucratic burdens are lower.”
(bohy)