A survey conducted by the Cologne-based Institute for Economic Research (IW) has revealed that more than a third of German companies anticipate having to cut jobs by the end of 2025. The survey, known as the “Spring Survey” was carried out among 2,000 German business executives. According to the survey, 35 percent of companies expect job cuts in 2025, while only 24 percent plan to hire new employees. The pessimistic outlook was particularly prevalent in the industrial sector, with 42 percent of companies expecting to reduce staff, compared to only 20 percent planning to create new jobs. The service sector fared slightly better, with 21 percent of executives expecting job cuts and 36 percent anticipating job creation. The IW’s press release reminds readers that the economic sentiment has been “dismal” since the autumn of 2023, with more pessimists than optimists in the traditional survey conducted twice a year by the institute. While the numbers improved slightly in the spring of 2025, the institute warns that the prospects for 2025 remain grim, with particularly poor sentiment in the construction and industrial sectors. The service sector, however, saw more optimists than pessimists in early 2025.
One-Third of Companies Plan Layoffs
