^{Source: WSJ}

Widespread Layoffs Hit Europe: Over 35,000 Jobs at Risk as Economic Pressures Mount

As demand falters and costs soar, European companies respond with massive workforce cuts

Europe’s economic slowdown is now translating into significant job losses across the continent. Since March 2025, several of Europe’s largest corporations—spanning automotive, banking, manufacturing, tech, and consumer goods—have begun major layoffs and hiring freezes.

With inflationary pressures, interest rate volatility, and sluggish demand hitting revenues hard, companies are being forced to trim headcount in a bid to stay financially viable.

Below is a detailed breakdown of layoffs by sector and company.

Auto Sector Hit Hard by Slumping Sales and Rising Tariffs

1. Porsche (Germany)

• Total job cuts: 3,900
• On March 12, the luxury automaker added 2,000 more job cuts to the 1,900 previously announced.
• Additional layoffs are expected in H2 2025 as part of a union negotiation.

2. Renault (France)

• Job cuts: 300 at its Sandouville van factory
• Announced on March 11, citing dwindling demand for commercial vehicles across Europe.

3. Stellantis (Italy & U.S.)

• Temporary layoffs: 900 U.S. workers after new U.S. tariffs (announced April 3).
• Permanent cuts: 350 in southern Italy as part of long-term restructuring (confirmed by Fiom union on April 2).

4. Volkswagen Group (Germany)

• Total headcount reduction: ~14,500
  • 7,000 roles already cut in Germany since late 2023 (announced April 30).
  • Audi, part of VW Group, to cut up to 7,500 jobs by 2029, primarily in admin and R&D.

5. Volvo Trucks (Sweden/U.S.)

• Planned layoffs: 800
• Will affect three U.S. plants over the next three months (April 18), linked to tariff uncertainties and market slowdown.

Banking Sector Responds with Branch Closures and Restructuring

6. Deutsche Bank (Germany)

• Job cuts: ~2,000
• Targeting the retail banking division, with major branch closures planned for 2025 (March 19 announcement).

7. Santander UK

• Potential layoffs: 750
• Due to fresh round of branch closures across the UK (March 19).

8. UBS (Italy)

• Confirmed cuts: 180 jobs
• Roughly a third of its Italian workforce, disclosed to unions on April 1.

Industrials and Manufacturing Firms Trim Operations

9. Siemens (Germany)

• Massive layoffs: 5,600
• Focused on its Digital Industries division, facing demand decline in China and Germany (announced March 18).

10. STMicroelectronics (France/Italy)

• Planned cuts: ~1,000 jobs in France
• Part of a 2,800 job global restructuring effort, confirmed April 30.

11. Thyssenkrupp (Germany)

• Planned layoffs: 1,800
• Blamed on prolonged weakness in the auto sector supply chain (announced March 6).

12. LVMH - Moët Hennessy (France)

• Reported job cuts: 1,200
• Reported by Financial Times (May 1) based on internal company video, due to a slowdown in luxury consumption.

13. Nestlé (Germany)

• Jobs affected: 225
• Due to the divestment of two factories, citing overcapacity (March 20).

14. Puma (Global)

• Planned job cuts: 500 worldwide
• Announced on March 12 as part of a cost-control initiative.

15. Morrisons (UK)

• Jobs at risk: 365
• As part of store operation restructuring to offset cost increases (March 24).

Biotech, Logistics, and Forestry Firms Restructure

16. BioNTech (Germany)

• Layoff plan: 950–1,350 positions by 2027
• Cuts at mRNA manufacturing site in Marburg, and in European and North American R&D (March 10).

17. DHL (Germany)

• Planned layoffs: 8,000
• Goal is to reduce costs by €1 billion+ as part of a major German operations overhaul (March 6).

18. UPM (Finland)

• Jobs impacted: 462
• Result of a permanent paper mill closure in Germany and realignment due to market overcapacity (March 11).

What This Means for Europe’s Workforce and Economy

These layoffs, already impacting over 35,000 jobs across the continent, reflect deeper economic challenges including:

• Declining industrial output in key sectors
• Tariff-related market instability, particularly affecting auto and transport firms
• Technology transition pains, such as automation and digitalization
• Shifts in consumer behavior post-COVID and amid inflationary pressure

Economists suggest that unemployment could climb modestly in the second half of 2025 if the slowdown persists and the ECB remains cautious with rate cuts.

A Harsh Adjustment Phase Ahead

With inflation, high borrowing costs, and geopolitical uncertainty still casting long shadows, companies are bracing for a “longer-than-expected adjustment phase” in the European economy. While some see this as a strategic reshaping of operations to improve efficiency, the human cost is real—and growing.

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