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Over a third of companies are planning job cuts in 2025 - the crisis is spreading!
More than a third of companies in Germany are planning job cuts in 2025. Economic survey shows pessimistic business climate.
Over a third of companies are planning job cuts in 2025 - the crisis is spreading!
A current survey by the German Economic Institute (IW) shows a worrying picture of the German economy. Loud Law and politics More than one in three companies are planning to cut jobs in 2025. The survey, conducted in March and April 2025 among over 2,000 companies, indicates pessimistic business expectations.
Around 35 percent of the companies surveyed stated that they wanted to make lower investments than in 2024. The negative mood is particularly noticeable in industry and construction, while there is slight hope in the service sector. In spring 2025, the balance between optimists and pessimists had improved slightly, but remains negative. IW economics chief Michael Grömling explains that the US customs policy under President Donald Trump is putting a significant burden on German industry, even though the unclear customs regulations were not yet active at the time of the survey.
Job cuts and employment plans
German companies are also confronted with geopolitical conflicts and a weaker global economy, which has a negative impact on competitiveness and foreign business. High energy, regulatory and labor costs also contribute to the burden.