25% of German family businesses could cut staff due to energy crisis: Survey

BERLIN (AA) - The consequences of the energy crisis for German businesses could be severe as 25% of companies may respond to rising energy costs by cutting staff, while 90% are likely to respond by raising prices, with some already implementing such decisions.

The findings of a survey by the Foundation for Family Businesses, carried out by the Munich-based Ifo Institute for Economic Research in September, were based on a total of 1,060 companies, the majority of them family businesses.

In the previous survey conducted by the foundation in April, only 14% of companies were planning layoffs.

According to the new survey, 13% of companies now also expect to halt production. In April, the figure was still 6%.

Production relocations abroad are currently being tackled by 9% of companies, up from 6%.

According to the study, the companies are dissatisfied with the crisis management of politics, calling for subsidies for private investment in energy efficiency or renewable energies.

Meanwhile, targeted aid for companies or industries is also frequently mentioned in the survey.

Family businesses are the most widespread type of company in Germany. More than 90% of all companies are family-owned, accounting for 58% of all jobs -- a stabilizing factor for the employment market in times of economic downturn.