Wave of Layoffs in Germany: Economic Data Raises Alarm

Layoff Plans in Germany

Negative data in the German economy continues to significantly change companies' plans for 2026. According to a survey conducted by the Institute of the German Economy (IW) with 2,000 companies, one in three companies in Germany plans to implement layoffs in 2026. 36% of the participating firms reported that they are considering reducing their workforce due to the deteriorating economic outlook. Additionally, the proportion of companies planning to hire new employees is only at 18%.

Worse Situation in the Industrial Sector

The layoff plans in Germany are primarily affecting companies in the industrial sector. The IW research shows that in 2026, 41% of firms operating in the industrial sector are considering terminating contracts with some employees. Only 14% of these companies plan to create new jobs.

Investment Plans at Risk

Investment plans for 2026 are also under threat. According to the IW research, only 23% of companies are considering allocating more resources to new projects next year, while 33% plan to allocate less budget for new investments. This situation poses a serious threat to the development of the German economy.