In Europe, the highest inflation in recent years and the uncertainty created by the effects of the Russia-Ukraine war on the economic outlook hastened companies’ decisions to cut jobs, while the wave of layoffs that has accelerated since the beginning this year, especially in the telecommunications, information technology, automotive and retail sectors, has reached at least 140 thousand people affected.

With the uncertainty created by the worsening macroeconomic outlook, as inflation remains unusually high despite interest rate hikes by central banks, more and more companies are accelerating layoffs to reduce their costs.

While high inflation reduces the purchasing power of households, rising interest rates in the face of inflation also increase companies’ credit costs for investment.

As a result of layoffs that have spread to almost all sectors since the beginning of this year, especially in the technology, chemical, bank manufacturing and automotive sectors, Sweden’s Autoliv closed its 8,000 plants, all four of the Finnish paper and Stora Enso packaging plants in Europe and 1150 employees, layoffs have been added.

TECHNOLOGY AND TELECOMMUNICATIONS INDUSTRY

UK-based telecommunications company Vodafone announced last week that it will cut 11,000 jobs over the next three years to cut costs and accelerate growth. Vodafone has approximately 104,000 employees around the world.

It is expected that Germany, England and Italy, the largest and also the worst market for the company, will be the countries most affected by the dismissal decision. In March, Vodafone announced plans to cut 1,000 jobs in Italy and around 1,300 in Germany.

Vodafone’s decision was again followed by UK-based telecommunications company BT.

BT has announced that it will lay off 40,000 to 55,000 employees by 2030, due to the need for less manpower in its operations with increasing digitization and cost reduction.

The British telecoms giant’s total employment will fall from 75,000 to 90,000 by 2030, from its current level of 130,000. This decline means the company has cut more than 40 percent of its total workforce.

Telekom Italia, on the other hand, plans to lay off 2,000 people in Italy through a voluntary early retirement program.

Swedish telecommunications equipment maker Ericsson has announced that it will 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.

Finnish telecommunications equipment manufacturer Nokia announced on May 3 that it will cut 208 jobs.

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.

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.

Netherlands-based Philips announced plans to cut 6,000 jobs to offset falling sales after a massive ventilator recall in late January.

Thus, the large telecommunications and information technology companies in Europe decided to lay off more than 105,000 employees in order to reduce their costs.

AUTOMOTIVE INDUSTRY

Carmaker Stellantis, which includes the Vauxhall, Peugeot, Citroen, Fiat, DS, Jeep, Alfa Romeo, Maserati, Abarth and Fiat Professional brands, agreed with unions in February to lay off 2,000 workers through voluntary layoffs at its Italian operations .

Swedish group Volvo announced in March that it will restructure its bus manufacturing operation in Europe and cut 1,600 jobs.

Volvo Cars, on the other hand, announced its decision to lay off an additional 1,300 jobs in Sweden earlier this month. This figure constitutes 6 percent of the workforce in the company’s home country.

Italian auto parts maker Marelli has announced that it has agreed with the unions to lay off 400 jobs by the end of March.

The British manufacturer of electric vehicles Arrival has decided to lay off 800 people, half of its employment, to reduce its costs.

German automotive and industrial supplier Schaeffler announced that 1,300 more people will be made redundant by 2026 during the restructuring process.

Sweden-based Autoliv, the world’s leading manufacturer of seat belts and airbags, has decided to close many factories in Europe and lay off approximately 8,000 employees by 2025 due to rising costs.

According to the decision announced by the European automotive companies, layoffs in the sector will exceed 15,400 people in total.

RETAIL INDUSTRY

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.

Just Eat, an England-based online food and delivery company, decided to separate at the end of March with a total of 1,870 employees, including 1,700 couriers and 170 office workers.

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.

While announced layoff decisions in retail and consumer products cause at least 2,520 people to lose their jobs, there is a risk that this number will rise with final decisions from companies that have yet to announce how many people will be laid off.

INDUSTRY, CHEMICAL AND ENGINEERING SECTOR

British cybersecurity company Sophos announced in January that it will cut 450 jobs worldwide.

German consumer goods company Henkel also cut 2,000 jobs to combat rising costs and low demand.

British retail chain Wilko is reportedly planning to lay off 400 people.

Finnish elevator manufacturer Kone also announced in January that it will reduce its workforce by 1,000 people, including 150 at home.

The Swedish steelmaker announced that it is in talks to lay off 850 of its approximately 4,700 employees in Finland due to weak demand in the construction sector.

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.

German chemical company BASF, warning that its profits will fall further due to rising costs, has announced that 2,600 people will be laid off.

German specialty chemicals manufacturer Evonik announced a plan to lay off 200 people in April.

Wind turbine maker Siemens Gamesa reported last year that it plans to cut 2,900 jobs by 2025 as part of its plan to return to profitability. 1900 of this job reduction is scheduled to take place in Europe.

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, announced that it will restructure and lay off 1,000 jobs.

British homebuilder Vistry Group is also reported to lay off 200 employees.

Finnish paper and packaging manufacturer Stora Enso has announced that it plans to close its four plants in Europe and lay off 1,150 employees.

With the redundancy decisions announced in the industrial, chemical and engineering sectors, there will be a job loss for approximately 16 thousand people in Europe.

BANKING SECTOR

Deutsche Bank, Germany’s largest bank, also 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.

It was reported in the British media that the British Standard Chartered bank plans to lay off 100 people at its offices in London, Singapore and Hong Kong.

900 employees are affected by the dismissal decisions announced so far in the European banking sector, where crises are experienced after high interest rates. (AA)