The effects of high interest rates on Europe’s economies are beginning to be felt and concerns about recession are forcing many companies to restructure and lay off jobs.

To reduce unusual inflation in Europe, central banks have raised interest rates quickly and sharply for about two years. Although inflation decreased as a result of the tightening of monetary policy, the pressure of high borrowing costs began to be felt on companies.

Due to growing concerns about a recession following high interest rates, companies in almost all sectors in Europe, especially technology, finance, real estate, media, telecommunications, automotive and chemicals , are increasingly prone to layoffs to reduce costs.

In this context, the latest of the layoff decisions that have continued in Europe since the beginning of the year came from the Finnish telecommunications equipment manufacturer Nokia. The company announced that it will lay off up to 14,000 employees with the aim of saving between 800 million and 1,200 million euros between now and 2026.

Rolls Royce will lay off 2,500 people

Rolls-Royce, the UK-based aerospace, engineering and defense company, also decided to part ways with between 2,000 and 2,500 employees to restructure and increase efficiency.

Paris-based BNP PARIBAS, tax and consulting firm KPMG, Germany-based chemicals company Lanxess, Finnish wood materials maker Fiskars and Switzerland’s largest bank UBS were among the top European companies that They made layoff decisions in the last two months.

Some of the layoff decisions announced by large companies in Europe since the beginning of this year are as follows;

TELECOMMUNICATION

British telecommunications company Vodafone announced that it will lay off 11,000 people over the next 3 years to reduce costs and accelerate growth. The company employs approximately 104 thousand people worldwide. Vodafone announced in March that it planned to lay off 1,000 people in Italy and approximately 1,300 in Germany.

The British company BT announced that it will say goodbye to between 40,000 and 55,000 employees by 2030, for reasons such as needing less labor in its operations and reducing costs with increased digitalization. This figure means that the telecommunications giant will reduce more than 40 percent of its total workforce.

The British telecommunications company Virgin Media also decided to lay off 2,000 employees.

Telecom Italia plans to cut 2,000 jobs in Italy through a voluntary early retirement plan, while Swedish telecommunications equipment maker Ericsson has decided to cut 8,500 jobs worldwide as part of a plan to cut costs.

Swiss computer accessories manufacturer Logitech announced that it will lay off 300 people in March.

Finnish telecommunications equipment manufacturer Nokia announced that it will lay off 208 people on May 3. In its October 19 statement, the company stated that up to 14,000 employees would be laid off as part of the cost-cutting plan, thereby reducing the current number of employees from 86,000 to between 72 and 77,000.

Accenture, the joint Irish and American information technology company, decided to lay off 19,000 people at the end of March due to concerns about the global economy.

German software company SAP announced that it plans to lay off 3,000 people, constituting 2.5 percent of its global workforce, to cut costs and focus on the cloud business at the end of January.

Dormakaba, a Swiss-based smart access and security solutions company, has decided to lay off 800 full-time employees.

FINANCE

BNP PARIBAS, the Paris-based banking institution, announced that it will lay off 900 people in the period 2024-2026.

Swiss banking giant UBS announced that it plans to lay off 3,000 employees following its acquisition of Credit Suisse.

Deutsche Bank, based in Germany, decided to lay off 800 people to reduce its costs by 500 million euros in a few years, and the British bank Standard Chartered decided to lay off 100 employees in its offices in London, Singapore and Hong Kong.

AUTOMOTIVE

Autoliv, a Swedish manufacturer of airbags and seat belts, announced that it will evacuate 8,000 people.

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 redundancies at its Italian operations. The company announced it would close its plant in Austria at the end of June, affecting 300 people.

Swedish Volvo Group announced in March that it would restructure its bus manufacturing operations in Europe and cut 1,600 jobs.

Volvo Cars announced the decision to lay off 1,300 more people in Sweden earlier this month. While this figure represents 6 percent of the company’s workforce in its home country, the company decided to reduce 10 percent of its workforce in Canada and the United States.

Italian auto parts manufacturer Marelli announced that it has reached an agreement with unions to lay off 400 people at the end of March.

British electric vehicle maker Arrival decided to lay off 800 people, making up half of its employment, to cut costs.

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

Automotive parts supplier Continental announced that it will cease operations at its facility in Gifhorn, Germany, at the end of 2027 and that between 450 and 900 employees will be affected.

While electric truck manufacturer Volta Trucks decided to file for bankruptcy due to supply chain and access to financing issues, it was announced that 850 employees would lose their jobs.

ENGINEERING, INDUSTRY AND CONSTRUCTION

Rolls-Royce, the UK-based aerospace, engineering and defense company, also decided to part ways with between 2,000 and 2,500 employees to restructure and increase efficiency.

British construction company Marshalls 250 and Swedish polymer product systems manufacturer Nolato announced that they will lay off 500 employees in China.

Swedish steel company SSAB announced that the number of people who will be laid off will be clarified after negotiations with the union over the situation of 800 employees at its two facilities in Finland.

The battery company Varta also decided to part ways with a total of 390 people this year and in 2024.

Swedish engineering group Alfa Laval has announced a restructuring program that will see around 500 employees made redundant after rising costs negatively affected its maritime business.

British Steel, sold to China, announced it could lay off 260 people after announcing the planned closure of its coke ovens in the north of England.

The Finnish elevator manufacturer Kone decided to reduce its workforce by 1,000 people, of which 150 in its country, and the Dutch company Philips decided to reduce its workforce by 6,000.

Wind turbine manufacturer Siemens Gamesa announced that it plans to lay off 2,900 people by 2025 as part of its plan to return to profitability. 1,900 of these job reductions are expected to take place in Europe.

FOOD AND RETAIL

French retail company Carrefour announced it would lay off 979 employees, Finnish wood products manufacturer Fiskars announced it would lay off 400 people, British food delivery company Deliveroo announced it would lay off 350 people, representing 9 percent of its workforce, and British food delivery company Just Eat announced it would lay off 1,870 employees.

The British supermarket group Sainsbury’s announced that 300 people will be made redundant immediately following the restructuring plan that will affect the employment of 2,000 people.

German consumer products company Henkel announced it will part ways with 2,000 employees to combat rising costs and low demand, and British cybersecurity company Sophos will part ways with 450 employees worldwide.

As it was announced that 1,300 employees at British retailer Wilco would be out of work following bankruptcy, Haleon, toothpaste maker Sensodyne, German fashion retailer Zalando and glasses retailer Fielmann said they would lay off hundreds of people, without give a clear answer. number.

Citing rising costs, German chemical company BASF decided to lay off 2,600 people, German specialty chemicals producer Evonik 200 people, Spanish pharmaceutical company Grifols 2,300 employees, and Swedish garden equipment and tools maker Husqvarna. , decided to restructure and lay off 1,000 people.

British housebuilding company Vistry Group also said it could lay off 200 employees, while contracting company Taylor Wimpey also announced it has a plan to reduce employment.

Tax and audit company KPMG decided to separate with 100 employees, Germany-based chemical company Lanxess with 870 employees due to the slowdown in the sector and Paris-based industrial gases company Air Liquide with 430 employees.

Finnish paper manufacturer Stora Enso announced that it will lay off 1,150 people.

Among the European companies that announced layoffs were UPM-Kymmene, real estate company Kojamo, media outlets ProSiebenSat.1 and Viaplay. (AA)