Sunday, May 07, 2023

Layoff wave in Europe grows amid signs of economic slowdown

Layoffs increasing in Europe, affecting various sectors including automotive, food, industry, finance

Nuran Erkul and Bahattin Gonultas
AA |07.05.2023 
LONDON / BERLIN

While inflation and rising interest rates, which reached the highest level in the last 30 years in Europe, have negatively affected private consumption and slowed the economy, many companies on the continent are announcing that they are reducing the number of their employees or suspending new hirings.

Despite a rapid economic recovery after the COVID-19 pandemic, companies in almost all sectors have to take steps to reduce their costs and put the brakes on recruitment due to high inflation that has become “sticky” with the effect of the Russia-Ukraine war, increasing interest rates and deteriorating macroeconomic outlook.

According to the Future of Jobs 2023 report published by the World Economic Forum last week, slowing economic growth, supply constraints and inflation pose the biggest risks to the future of employment.

Meanwhile, in addition to European-based firms, big US technology and automobile companies are also trying to reduce the number of staff in Europe after announcing the biggest layoffs in their history.



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