Quarter of German companies planning redundancies

Quarter of German companies planning redundancies
Photo: DPA
A new survey has found that one in four German companies are planning to lay people off, according to financial magazine Wirtschaftswoche.

The survey, commissioned by the magazine and carried out by the Munich-based Ifo Institute for Economic Research, found that larger companies have been particularly hit by the financial crisis. Almost two-thirds of companies with more than 1,000 employees want to downsize, the research concluded.

Industry has been affected more than the rest of the economy. As many as one in three industrial companies, or 34 percent, are planning redundancies, the magazine said.

The survey also found that more and more German companies are turning to short-time work. 11 percent of companies already employing short-time workers want to extend contracts, while of those that do not offer short-time work at present, 10 percent are planning to introduce it. But 27 percent of company managers fear that this will not be enough to prevent redundancies.

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