Thousands of German Workers Face Layoffs and Insolvencies as Economic Headwinds Intensify
17.06.2026 - 18:44:40 | boerse-global.de
A wave of job cuts and insolvency filings swept across Germany this week, hitting retail chains, industrial manufacturers, a travel tech firm, and a regional bakery. Together, the announcements affect thousands of employees and underscore the strain of rising costs, weak consumer demand, and geopolitical uncertainty.
The biggest single impact came from two building-supply retailers. Hellweg, a hardware-store chain with 68 outlets, filed for insolvency in self-administration on Tuesday at the district court in Essen. The court approved the petition, and operations—both in-store and online—continue for now. Roughly 2,900 employees are affected, with their salaries covered by insolvency compensation for three months. Stefan Denkhaus, a restructuring specialist, was appointed provisional administrator. BayWa Bau- und Gartenmärkte, another chain in the same sector, opened a parallel proceeding. Between the two retailers, more than 4,300 workers at over 100 locations are caught up in the process. The law firm Görg is handling the restructuring. Hellweg’s revenue plunged from 850 million euros in 2022 to 672 million euros last year, squeezed by a sharp pullback in consumer spending after the pandemic boom and by higher purchasing, rent, and energy costs.
Staff reductions are also accelerating in the travel and industrial sectors. Lastminute, the online travel agency, announced on Tuesday that it would cut 400 jobs—a quarter of its 1,600-strong workforce—as part of a new AI-driven strategy. The restructuring, which runs through the end of 2026, is expected to generate annual savings of 16 million euros from 2027. The company did not disclose which countries would see the deepest cuts.
In Krefeld, the Siempelkamp Group said it would eliminate 127 of 371 positions at its local site. The company blamed a deteriorating market environment, geopolitical tensions, and U.S. tariff policy, along with a weak construction sector and the loss of the Russian market.
The food-crafts sector was not spared. Thüringer bakery chain Lampe filed for insolvency on Tuesday, citing steep increases in raw-material, energy, and labour costs paired with reluctant consumer spending. The closure affects 44 stores across Saxony, Saxony-Anhalt, and Thuringia, and about 280 employees.
Labour unions, meanwhile, are sharpening their criticism of large employers. At DHL’s Leipzig hub, the DPVKOM union accuses management of a hidden workforce reduction. DHL acknowledged on Tuesday that headcount had fallen from over 7,000 at the start of 2024 to over 6,000 at the beginning of 2026. The company attributes the drop to natural turnover and says it will not backfill vacated positions. The union estimates the effective job loss at roughly 1,000 posts.
IG Metall took aim at optics group Zeiss, which is pushing ahead with a cost-saving programme even though the EU has approved 222 million euros in state aid. The union said the worst cutbacks were averted at the Aalen and Göttingen sites, but the total number of positions at risk remains unclear. Zeiss aims to trim several hundred million euros in annual spending.
Amid the gloom, one mechanical-engineering firm offered a brighter note. Thomas Mühleck, CEO of Kurtz Ersa, reported on Tuesday that the company had regained market share in China within one year. Order intake surged 75 percent after a period of short-time work, signalling a recovery in that export segment.
