Companies continue layoffs as economic growth stagnates in Europe

By Bahattin Gonultas

BERLIN (AA) - In Europe, the pending interest rate cycle of major central banks, especially the US Fed, the uncertainty caused by rising geopolitical tensions and the ongoing effects of the Russia-Ukraine war forces companies in many sectors to freeze hiring or lay off workers.

Recent developments in layoffs across almost all sectors include Unilever's decision in the UK to lay off around 3,200 office workers in Europe by the end of next year, and British bank TSB's announcement that it will cut 250 jobs and close 36 branches.

In addition, high inflation compared to the pre-Covid-19 period reduces the purchasing power of households, while the rise in interest rates in the face of inflation raises the cost of credit for companies to invest, causing tremors in future planning.

Given this, Finnish brand Metso, German steelmaker Thyssenkrupp, Belgian metal recycler Umicore and Poland's largest cargo company PKP Cargo have also announced downsizing.

After high inflation and interest rates, economic stagnation is leading to declining sales and profits for many of Europe's leading companies.

Furthermore, French supermarket chain Casino, British company Haleon, British retailer Ted Baker, Norwegian telecommunications company Telenor, Vodafone Spain, Dyson, and pharmaceutical and chemical companies Indivior, Bayer, and Curevac have announced that they will downsize through layoffs and branch closures.

*Writing by Sahika Olgun from Istanbul