Every third company is planning to cut jobs in 2025 - that's what's behind it!

A current survey by the German Economic Institute (IW) in Cologne shows worrying trends regarding the employment situation in Germany. According to the survey, which was carried out in March and April 2025 and surveyed almost 2,000 companies, around 35 percent of companies are planning to cut jobs in the current year. This is a decline compared to autumn survey values ​​from 2024, in which 38 percent of companies announced staff cuts Deutschlandfunk reported.

The study also shows that every third company surveyed is planning fewer investments this year compared to 2024. The existing economic challenges include the tariffs that US President Donald Trump has imposed on EU goods. These tariffs were not yet effective at the time of the survey, but were already having a negative impact on the export climate.

Industry-specific differences

The survey results show significant differences between the different industries. In industry, 42 percent of companies expect job cuts, while only 20 percent plan to increase their workforce. In the service sector, however, 21 percent of companies want to cut jobs, while 36 percent plan to hire more employees ZDF supplemented.

As a result, the economic prospects remain tense for many companies. Geopolitical conflicts and a weaker global economy contribute to this pessimistic mood. Michael Grömling, economics director at the IW, points out that high energy prices, increasing regulatory burdens and rising labor costs are significantly affecting the competitiveness of German companies.