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A NUMBER of large companies in Europe have once again made mass layoffs due to increasingly uncertain economic conditions. The layoffs were triggered by a number of factors, including continued global economic uncertainty.
High inflation, rising interest rates and declining purchasing power have affected the performance of many companies. Many sectors that were growing rapidly are now facing a significant decline in demand, forcing companies to take efficiency measures.
These large companies, which were also actively expanding their businesses and creating many jobs, are now facing tough challenges to survive. Although these job cuts are necessary efficiency measures, their impact on the economy and the welfare of workers is certainly a major concern amid the ongoing economic uncertainty.
As quoted by Reuters, some of the sectors that have been significantly affected include banking, automotive, technology and renewable energy. Here is a list of some of the companies that have announced job cuts since the beginning of August 2024:
Banking Sector
- DNB (Norway): In September 2024, DNB announced plans to cut 500 full-time positions over the next six months. The cuts were made in anticipation of falling interest rates and increased competition.
- Santander (Spain): In October 2024, the Spanish bank announced that it would cut more than 1,400 jobs from its UK operations.
- UniCredit (Italy): The Italian bank reached an agreement with unions on October 17, 2024, to cut 1,000 voluntary jobs and create 500 new ones.
Automotive and parts sector
- Michelin (France): The leading tire manufacturer announced on November 5, 2024 that it will close two plants in western France, affecting about 1,250 jobs.
- Schaeffler (Germany): On November 5, 2024, Schaeffler announced that it plans to cut 4,700 jobs due to declining demand from the automotive and industrial sectors.
- Equinor (Norway): On November 21, 2024, the energy company announced that it would cut 20 percent of its renewable energy workforce as part of a corporate efficiency drive.
Retail and Consumer Sector
- Auchan (France): The supermarket giant announced on November 5, 2024, that it would cut more than 2,000 jobs due to declining foot traffic at its physical stores.
- Husqvarna (Sweden): The gardening equipment manufacturer decided to cut about 400 jobs by October 2024, due to the economic crisis affecting consumer spending.
Telecommunications and Other Industries
- Telia (Sweden): The telecom operator plans to cut about 3,000 jobs by 2024.
- Lufthansa (Germany): The airline is expected to cut up to 20 percent of its administrative staff, as reported on November 14, 2024.
In addition, other major companies such as Airbus, Infineon, SMA Solar, and Shell have announced significant job cuts or workforce reductions. For example, Airbus plans to cut up to 2,500 jobs in its defense and space division, while Infineon plans to cut 1,400 jobs worldwide. [sources/photo special]
