BERLIN, July 25 (Reuters) - German rail operator Deutsche Bahn (DBN.UL) plans to cut 30,000 jobs, or around 9% of its staff, it said on Thursday, after huge investments to repair its rail network, strikes and bad weather led to a billion-euro first-half net loss.
The cuts are to be made over the next five years and mostly affect administrative jobs, Chief Financial Officer Levin Holle said, adding this year around 1,500 jobs would have to go.
German automotive supplier ZF Friedrichshafen plans to cut between 11,000 and 14,000 jobs in the country by the end of 2028, the company announced on Friday.
The exact extent of the job cuts, and which ZF locations will be affected, will now be determined, the company said. ZF employs a total of 54,000 people across Germany.
German auto supplier Continental announced plans on Wednesday to cut 7,150 jobs worldwide by 2025.
Continental, which produces tires and other car parts, said 1,750 jobs would be slashed from research and development, while the other 5,400 job cuts were previously announced as part of a cost-cutting program.
Historic moment for Volkswagen: Automaker plans to close ‘at least’ 3 German plants and cut thousands of jobs.
[Volkswagen currently has 10 plants and 300,000 employees in Germany - n.a.]
Now as many as 10,000 SAP jobs to be hit by restructure.
In January, the ERP and enterprise software biz said the restructure was likely to impact 8,000 positions worldwide. However, the European Works Council later described this as a "euphemism" for headcount reduction.
CFO Dominik Asam told investors: "We now estimate that between 9,000 and 10,000 positions will be affected with the corresponding impact on restructuring provisions, cash out and run rate savings after completion of the program. As compared to what we had indicated in the first quarter, we added about €800 million of restructuring expenses and cash out.
Deutsche Bank is cutting 3,500 jobs as it pushes ahead with a plan to reduce costs by €2.5 billion ($2.7 billion) by 2025.
Germany’s biggest lender said Thursday that it had made progress towards the target but still had to find savings of €1.6 billion ($1.7 billion), some of which would be driven by “simplified workflows and automation.” Most of the jobs will be lost in back office functions, it added in a statement.
Following the news of sweeping cuts at Volkswagen, Nissan, and Stellantis, now VW-owned Audi announced plans to slash its workforce by 15%, with thousands of jobs on the chopping block.
That means 2,000 jobs are on the line, with reductions in other parts of the business trimming off 4,500 people in total from the payroll, according to the report.
ThyssenKrupp, the largest steel maker in Germany, said Monday that it would eliminate up to 11,000 jobs by 2030, a decision that comes as the country struggled to overcome economic weakness that has hindered growth for nearly two years.
This is due to a combination of factors, with one significant issue being the lack of cheap energy—specifically, natural gas from Russia. Without it, the golden years of German industry appear to be behind us. Adding to this are the forcibly imposed, failed green energy initiatives, the financial drain from the Ukraine project, and spending on refugees, all of which help paint a clearer picture.
Meanwhile, the EU continues to push for sanctions against Russia. In December, we saw the 15th package! Strangely, no one seems to be questioning the effectiveness of the previous ones.
Update:
High energy costs and slumping exports have made German households €2,500 poorer and the decline threatens to become irreversible.
That has set Europe’s largest economy on a path of decline that threatens to become irreversible.
Following five years of stagnation, Germany’s economy is now 5% smaller than it would have been if the pre-pandemic growth trend had been maintained.
