European Firms Slash Jobs Amid Economic Downturn

European Firms

The current economic climate in Europe, characterized by heightened inflation and the ongoing war in Ukraine, has compelled numerous companies across the continent to freeze hiring or, in some cases, reduce their workforce significantly.

Here’s a comprehensive overview of the layoffs announced across various sectors since the beginning of April:

Banks:

• TSB: The British bank, owned by Spain’s Sabadell, is set to eliminate 250 jobs. This decision was announced on May 8 by both the bank’s spokesperson and the employee union.

Industrials and Engineering:

• PKP CARGO: Poland’s largest freight company disclosed on July 3 its plan to lay off 30% of its staff, a significant reduction aimed at streamlining operations.
• THYSSENKRUPP: The German conglomerate, involved in diverse industries from submarine construction to steel production, announced on April 24 that it would cut 450 jobs from its materials trade division.
• UMICORE: The Belgian metal recycling company plans to reduce its workforce by 14% at its German automotive catalysts business by 2027, as stated on June 19.

Retail and Consumer Goods:

• CASINO: The French supermarket chain revealed on April 24 its intention to cut between 1,293 and 3,267 positions to address financial difficulties.
• DYSON: The British manufacturer of vacuum cleaners and other home appliances will eliminate approximately 1,000 jobs as part of a global restructuring initiative.
• UNILEVER: The consumer goods giant plans to reduce a third of its office roles across Europe by the end of 2025, aiming to streamline its operations.

Telecoms:

• VODAFONE SPAIN: The former Vodafone unit, recently acquired by Zegona Communications, plans to reduce its workforce by up to 1,200 jobs, which represents just over a third of its employees. This was announced on June 12.

Pharma:

• BAYER: The pharmaceutical giant disclosed on June 26 its ongoing plan to cut managerial positions as part of a broader internal reorganization.
• INDIVIOR: The drugmaker announced on July 9 that it would reduce its workforce by approximately 130 jobs following the cessation of sales for its schizophrenia medication, Perseris.
• NOVARTIS: The Swiss pharmaceutical company revealed on April 9 its decision to cut up to 680 jobs within its development organization.

Others:

• BASF: The German chemical company mentioned on April 11 that it was considering layoffs at its Harjavalta site in Finland.
• BP: The oil and energy company has reduced its workforce by more than 10%—over 100 positions—in its electric vehicle (EV) charging sector, as reported on April 15. BP did not specify the exact number of job cuts.
• DEUTSCHE BAHN: The German rail operator plans to cut 30,000 jobs, accounting for approximately 9% of its workforce, a move announced on July 25.
• INFINEON: The German chipmaker announced on August 5 that it would eliminate 1,400 jobs worldwide and relocate an additional 1,400 positions to countries with lower labor costs.
• MANCHESTER UNITED: The English Premier League football club is proposing to cut around 250 jobs as part of a comprehensive redundancy program, according to a source close to the club on July 3.
• SIEMENS GAMESA: Siemens Energy’s wind turbine division plans to reduce its workforce by 4,100 jobs, or roughly 15% of its staff, as revealed in an internal letter to employees on May 28.
• TAMEDIA: The Swiss media company announced on August 29 that it would close two printing facilities, resulting in nearly 300 job losses, as part of new cost-saving measures.
• UPM: The Finnish forestry group said on August 21 that it would close a newsprint mill and shut down one fine paper machine in Germany, affecting 338 jobs. Additionally, UPM will close its biocomposites business by the end of 2024, leading to 59 job losses in Finland and Germany, as announced on August 26.

These substantial workforce reductions across various industries highlight the broader impact of economic pressures and geopolitical events on the European job market.