More than a Third of Companies in Germany Plan to Cut Jobs by 2025

More than a third of companies in Germany are planning to reduce their workforce by the year 2025. This alarming trend comes from a study conducted by the German Economic Institute (IW), as reported by BELTA, citing credible sources.

"The German economy is currently in a deep crisis. More than one-third of companies intend to invest less this year compared to 2024. Approximately 35% of businesses are planning to lay off employees," stated a press release on the institute's website.

This survey involved over 2,000 companies assessing their business outlook for the year, and particularly pessimistic sentiments were noted among firms in the construction and manufacturing sectors.

It is highlighted that the situation has been challenging since the autumn of 2023, with tariffs announced by President Donald Trump further complicating matters. Michael Gremmling, an expert at the institute, clarified that the trade war imposes a tremendous burden on companies and poses a significant trial for the German economy.

"The new government in Germany must take responsive measures in close collaboration with the EU to ensure businesses have as much stability as possible during these tumultuous times," the expert remarked.

Earlier, on April 2, President Trump announced the imposition of customs tariffs on products from 185 countries and territories. A universal tariff of 10% took effect on April 5, while country-specific tariffs were enacted on April 9. Additionally, on the same day, Trump declared a temporary suspension of extra import duties on select countries and territories for 90 days, enacted on a reciprocal basis. The White House explained that this pause is linked to ongoing trade negotiations, during which a "universal tariff of 10%" will apply. Concurrently, the U.S. leader increased tariffs on Chinese products, with the overall tariff on goods from China currently reaching up to 145%.