Wave of layoffs in Europe widens with signs of economic slowdown
While inflation and the increase in interest rates, which reached the highest level in the last 30 years in Europe, have negatively affected private consumption and slowed down the economy, many companies on the continent announce that they are reducing the number of employees or New purchases are suspended. .
Despite the rapid economic recovery after the Covid-19 epidemic, companies in almost all sectors have to take steps to reduce their costs and curb hiring due to high inflation, rising interest rates and deterioration of the macroeconomic picture, which has become “sticky”. with the effect of the Russia-Ukraine war.
The unusual rise in inflation across Europe, continued supply chain disruptions, rising costs, trade protectionism, and deteriorating macroeconomic prospects force companies to adapt to the new climate, especially in the technology sectors. and manufacturer.
The successive news of “layoffs” or “suspension of new purchases” by European companies that try to stabilize their declining profits with layoffs is causing concern in the European economies.
WORLD ECONOMIC FORUM CLASSIFIES THE GREATEST RISKS
According to the Future of Jobs 2023 report released by the World Economic Forum (WEF) last week, slowing economic growth, supply constraints and inflation pose the biggest risks to the future of jobs.
On the other hand, in addition to European-based companies, big US auto and tech companies are also trying to downsize in Europe after announcing the biggest layoffs in their history.
HIGHLIGHTED DESIGN DECISIONS IN EUROPE
In Europe every day there are new layoffs in the automotive, food, retail, industry and engineering, technology, telecommunications, finance and other sectors.
Automaker Stellantis reached an agreement with unions in February to lay off 2,000 workers through voluntary layoffs at its operations in Italy.
Swedish group Volvo announced in March that it will restructure its bus manufacturing operation in Europe, laying off 1,600 people.
Sweden-based Volvo Cars announced the decision to lay off 1,300 more people in Sweden on May 4. This figure constitutes 6 percent of the workforce in the company’s home country.
The Italian company Marelli announced at the end of March that it had agreed with the unions to lay off 400 people.
The British manufacturer of electric vehicles Arrival has decided to lay off 800 people, half of its employment, to reduce its costs.
British food delivery company Deliveroo said it would cut 350 jobs, 9% of its workforce.
British supermarket group Sainsbury’s has announced that it will cut 300 jobs just after its restructuring plan, which will affect around 2,000 jobs, was announced at the end of February.
German online fashion retailer Zalando said in February it would cut hundreds of jobs across the company, citing “difficult economic conditions.”
German eyewear retailer Fielmann said in March that it plans to cut hundreds of jobs by 2025.
19 THOUSAND PEOPLE WILL BE LAID OFF
Accenture, an Irish-American partnership information technology company, decided to lay off 19,000 people at the end of March due to concerns about the global economy.
British cybersecurity company Sophos announced in January that it will cut 450 jobs worldwide.
Swedish telecommunications equipment maker Ericsson is reportedly going to cut 8,500 jobs worldwide as part of its plan to cut costs.
The Swiss manufacturer of computer accessories Logitech has decided to lay off 300 people in March.
British retail chain Wilko is reportedly planning to lay off 400 people.
British Steel, which sells to China, has announced it will cut 260 jobs after announcing the planned closure of coke ovens in the north of England at the end of February.
Finnish elevator manufacturer Kone announced in January that it will cut 1,000 employees, including 150 at home.
Finnish telecommunications equipment manufacturer Nokia announced on May 3 that it will lay off 208 jobs.
Netherlands-based Philips announced plans to cut 6,000 jobs to offset falling sales after a massive ventilator recall in late January.
German software firm SAP has announced that it plans to cut 3,000 jobs, 2.5 percent of its global workforce, to cut costs and focus on the cloud business by the end of January.
DISCHARGE DECISIONS BY TELECOMMUNICATIONS COMPANIES
Telekom Italia is reportedly trying to lay off 2,000 jobs in Italy through a voluntary early retirement program.
British telecommunications company Vodafone announced in March that it plans to cut 1,000 jobs in Italy and around 1,300 in Germany.
German chemical company BASF has announced that 2,600 people will be laid off, warning that there will be a further decline in profits due to rising costs.
German consumer goods company Henkel also cut 2,000 jobs to combat rising costs and low demand.
Deutsche Bank, Germany’s largest bank, announced on April 27 that it will cut 800 jobs in an effort to cut costs by 500 million euros over the next few years.
German specialty chemicals manufacturer Evonik announced a plan to lay off 200 people in April.
Wind turbine maker Siemens Gamesa announced last year that it plans to cut 2,900 jobs, mostly in Europe, as part of its plan to return to profitability.
German automotive and industrial supplier Schaeffler has stated that a further 1,300 people will be made redundant by 2026 during the restructuring process.
The Spanish pharmaceutical Grifols has decided to lay off 2,300 employees as part of the review of its strategy, which aims to save approximately 400 million euros per year.
British contracting firm Taylor Wimpey said in January it was considering redundancies to limit costs, but did not specify a number.
Swedish engineering group Alfa Laval has announced a restructuring program that will lay off around 500 employees after rising costs hit its shipping business last year.
Husqvarna, the Swedish manufacturer of garden equipment and tools, has also announced that it will restructure and lay off 1,000 jobs. (AA)