The beginning of 2021 has been overshadowed by announcements by leading German industrial companies of planned job cuts in the range of 42,000. But delayed effects of the pandemic-related shutdowns in 2020 have not been priced in yet; most of the job cuts already announced are related to streamlining of programs discussed before the pandemic. And the creation of new jobs stays at a miniscule level so far, as companies are not confident that 2021 will bring a recovery which would justify adding employees. More bad news to come, therefore, in the coming weeks and months.
Leading the pattern of deep job cuts is Thyssen-Krupp, Germany’s leading steel producer, which wants to reduce its workforce by 11,000; Siemens, with 7,800, comes next, followed by leading auto supplier Schaeffler with 4,000; MAN heavy trucks wants to cut 3,500 jobs, BASF 2,000. In the banking sector, Commerzbank will cut a third of its workforce, with 10,000 jobs to go.
