German companies are planning to cut staff, ifo barometer shows

Companies operating in the manufacturing, services, information technology and commercial sectors are considering reducing their workforces in light of the current economic situation in Germany.

Filipe Singer/EPA via Lusa

German companies are planning to cut their workforces. The employment barometer from the ifo statistics institute fell to 93 points, down from 93.4 points last month.

“The situation in the labor market remains tense, also due to the structural change in the economy,” said the person responsible for the surveys at ifo.

The ifo barometer states that in the manufacturing sector, job cuts are comparatively more “severe” compared to other sectors of the German economy, despite the increase in this indicator in the February barometer.

“Service providers want to be a little more restrictive in planning their workforce for the coming months. In the IT sector, companies are putting the brakes on. The commercial sector continues to be in a difficult situation, with companies trying to survive with fewer human resources. In construction, there is a slight trend towards fewer people,” said the ifo barometer.