Crisis in the industry: Many firms cut jobs
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Germany has bad news for the economy. Many firms want to cut jobs. Experts think: Many jobs will disappear by 2030. This year, 100000 jobs in the industry might go. The car industry and the building sector are affected.
The firm Volkswagen plans a big change. Maybe 100000 jobs will disappear world-wide. Some factories might close. One reason is the high cost for production. In China, people buy fewer cars from Volkswagen. Competition from Asia is getting stronger too.
Other firms leave Germany. They build new factories in India or in the USA. Workers cost less money there. Big firms like Evonik or Mercedes-Benz spend much money abroad. In Germany, they often only use money for new machines.
The retail sector also has problems. The decoration chain Depot has no money. It is insolvent. This means: A firm cannot pay its bills anymore. Depot closes 66 shops in Germany now. Many employees do not know if they keep their jobs. Online trade from Asia is a big competitor.
Loss of work makes many people afraid. Experts give tips for a new start. You can write a letter to yourself. This helps against the worry. Someone who signs an Aufhebungs-Vertrag often needs courage for something new. A coach can help to find energy again.
The firm Volkswagen plans a big change. Maybe 100000 jobs will disappear world-wide. Some factories might close. One reason is the high cost for production. In China, people buy fewer cars from Volkswagen. Competition from Asia is getting stronger too.
Other firms leave Germany. They build new factories in India or in the USA. Workers cost less money there. Big firms like Evonik or Mercedes-Benz spend much money abroad. In Germany, they often only use money for new machines.
The retail sector also has problems. The decoration chain Depot has no money. It is insolvent. This means: A firm cannot pay its bills anymore. Depot closes 66 shops in Germany now. Many employees do not know if they keep their jobs. Online trade from Asia is a big competitor.
Loss of work makes many people afraid. Experts give tips for a new start. You can write a letter to yourself. This helps against the worry. Someone who signs an Aufhebungs-Vertrag often needs courage for something new. A coach can help to find energy again.
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Definitions
- Insolvency
- A firm is insolvent when it cannot pay its bills.
- Termination agreement
- An Aufhebungs-Vertrag is an agreement between boss and employee to end the work.
Locations
- India
- India is a big country in Asia.
- United States of America
- The USA is a state in North America.
Sources
The Guardian
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