According to the latest research from the German Economic Institute (IW), 1 in 3 companies plans to lay off employees by 2026.
Negative data on the German economy continues to cause changes in German companies' plans for 2026.
According to the latest research conducted by the Cologne-based German Economic Institute (IW) by interviewing 2 thousand companies, one in three companies in Germany plans layoffs next year.
36% of companies participating in the survey said they will reduce headcount next year due to the worsening economic outlook. The proportion of companies declaring that they plan to make new hires in 2026 remains at 18%. WORSE IMAGE IN THE INDUSTRY In Germany, companies in the industrial sector are prominent in their plans to lay off employees. Accordingly, 41% of companies operating in the industrial sector plan to terminate labor contracts with some of their employees by 2026. One in every seven companies in this sector claims to want to create new jobs. ONLY 23 HUNDRED WANT TO ALLOCATE RESOURCES TO NEW PROJECTS Alarm bells are ringing about investment plans for 2026 due to economic data in Germany. According to IW research, only 23% of companies want to allocate more resources to new projects in the coming year, while 33% want to spend less money on new investments.
