From VW to Playmobil: German Insolvencies Surge to 12,900, Putting 165,000 Jobs on the Line
Published on 06/25/2026 at 03:45 | Redaktion boerse-global.de
At a packed works meeting in Baunatal on 23 June, roughly 6,000 Volkswagen employees voiced their discontent over the company’s internal communication as the automaker pushes ahead with a sweeping cost-cutting plan that aims to eliminate up to 50,000 positions in Germany by 2030. Plant manager Spengler insisted that utilisation rates remain stable and that half of the site’s products are already electric vehicles, adding that Baunatal is not currently on the chopping block.
Yet the unease at one of Germany’s most iconic employers reflects a broader malaise sweeping across the country’s industrial landscape. New data from Creditreform shows that corporate insolvencies in the first half of 2026 hit 12,900 – the highest figure since 2013. That marks an eight-percent jump compared with the same period last year. Roughly 165,000 jobs are now considered at risk, and the total estimated damage to creditors stands at about €28.5 billion.
Other automakers are also tightening their belts. BMW and Mercedes-Benz are planning mid-single-digit percentage workforce reductions, which industry analysts estimate could affect up to 16,000 employees. The reasons cited include disadvantageous location factors and intensifying competition in electric mobility.
In the machinery sector, Trumpf has announced it will cut up to 1,000 jobs, 430 of them at its headquarters. The company’s operating profit slid 18.6 percent to €500 million, prompting the restructuring.
Regional manufacturing hubs are taking direct hits. Playmobil halted production at its Dietenhofen plant on 30 June, shedding 350 jobs as output shifts to Malta and the Czech Republic. Trützschler closed its Mönchengladbach factory on 1 July, affecting around 200 workers – on top of 100 earlier layoffs. Zalando will shutter its logistics centre in Erfurt at the end of September, leaving 2,100 employees without work; the first conciliation hearing took place on 23 June. Atlas told staff at a 19 June meeting that 180 of 400 positions across Ganderkesee, Delmenhorst and Vechta would be eliminated. DIHAG Solutions is cutting 153 jobs by 30 June, blaming a collapse in demand for turbocharger housings.
The chemical industry is not immune. Evonik plans to eliminate 3,200 roles worldwide by the end of 2029, with 2,150 of those in Germany. The company’s Witten site will close entirely in 2027, as its polyester business has been unprofitable for years.
Technology companies are also paring back. Oracle reduced its workforce by 13 percent – roughly 21,000 jobs – in the fiscal year ending 31 May, attributing the cuts largely to the increased use of artificial intelligence. Severance expenses reached about $1.8 billion. US electric-vehicle maker Lucid cut 18 percent of its staff, aiming for annual savings in the millions.
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