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Survey Finds More German Family Firms Planning Job Cuts as Investment Plans Recede

Business groups cite red tape as a key brake on investment, pushing the cabinet to prepare measures to ease bureaucracy.

Overview

  • Twenty‑three percent of family‑owned companies say they will cut jobs this quarter, up from 19% a year earlier, according to a survey reported by dpa.
  • Sixty‑one percent plan to keep staffing unchanged through year‑end, and a majority still report open vacancies, underscoring uneven labor pressures.
  • Only about one in five respondents intend to expand their companies this quarter, while 46% say they do not plan to invest.
  • Association president Marie‑Christine Ostermann warned that layoffs at family firms are a warning sign and urged tax relief and social‑system reforms.
  • A separate IW Köln survey found 36% of companies plan job cuts next year and 18% foresee new hiring, as the federal cabinet moves to roll out bureaucracy‑reduction steps.