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European Companies Slash Jobs Amid Economic Uncertainty

Persistently weak demand and challenging economic conditions are driving job cuts and hiring freezes across Europe. Companies in diverse industries, from banking to manufacturing, are scaling back their workforce to navigate an uncertain financial climate.

Banking Sector Hit by Layoffs

Several European banks are adjusting to reduced profit margins and tougher competition. Norwegian bank DNB plans to eliminate 500 full-time positions, while Spain’s Santander will shed over 1,400 jobs in its UK operations. Italian lender UniCredit reached an agreement for 1,000 voluntary redundancies and plans to create 500 new roles.

Automotive and Industrial Cuts

The automotive industry has been particularly affected. French tire manufacturer Michelin will close two facilities, impacting 1,250 workers, while German car parts maker Schaeffler is laying off 4,700 employees due to sluggish demand. Similarly, Northvolt, a Swedish battery manufacturer, plans to cut 1,600 jobs.

Retail and Consumer Goods Struggles

Auchan, a major French supermarket chain, announced plans to cut over 2,000 jobs as customer traffic declines. Swedish garden equipment maker Husqvarna is cutting around 400 positions due to reduced consumer spending.

Telecom and Energy Challenges

The telecom sector is also under strain, with Swedish operator Telia planning to reduce its workforce by 3,000 in 2024. In the energy sector, Equinor, Norway’s oil and renewable energy giant, is trimming 20% of its renewable division staff, while Shell is reducing its oil and gas workforce by 20%.

Aerospace, Technology, and Beyond

Airbus aims to cut up to 2,500 jobs in its Defence and Space division by mid-2026, while Infineon, a German chipmaker, will eliminate 1,400 roles globally and relocate another 1,400 to lower-cost regions. Lufthansa is targeting a 20% reduction in administrative roles.

Other notable reductions include:

  • UPM: Mill closures in Germany and Finland will affect nearly 500 jobs.
  • SMA Solar: Plans to cut up to 1,100 jobs worldwide.
  • Mondi: Closure of a Bulgarian paper mill, affecting 300 workers.
  • Tamedia: Swiss media group cutting nearly 300 roles.
  • Syensqo: Belgian chemical producer reducing its workforce by up to 350 positions.

A Sign of the Times

These widespread layoffs highlight the pressing challenges companies face in a stagnant economy. As businesses restructure, the focus remains on adapting to market realities, managing costs, and positioning themselves for a more stable future.

EU Agrees On Major Overhaul Of Financial Market Supervision

European Union finance ministers have reached agreement on a sweeping package designed to strengthen oversight of the bloc’s financial markets, in a move aimed at reducing fragmentation and improving the flow of capital across borders.

A Push To Deepen Capital Markets

The Market Integration and Supervision Package, or MISP, would grant the European Securities and Markets Authority direct supervision over major market operators that are currently regulated by national authorities. The reforms are intended to make Europe’s capital markets more integrated, more efficient and better able to channel savings into productive investment.

According to the Irish presidency, the package is meant to help savings and investments move more freely across the European Union, improving access to finance for companies while giving households broader opportunities to earn returns on their savings.

What The Reform Would Change

Under the new framework, ESMA would take direct oversight of key trading venues, clearing houses, securities settlement bodies and crypto-asset service providers. The package would also establish a permanent, independent executive board within the regulator, strengthening its institutional capacity.

Market operators would be able to opt into a new EU-wide operating framework. In parallel, the reforms would seek to make national supervision more consistent and update rules governing trading, transaction completion, investment management and the use of blockchain technology.

Why The Agreement Matters

Supporters of deeper capital markets argue that Europe has long paid a price for regulatory inconsistency. While many rules are harmonised across the bloc, differences in enforcement and supervision have contributed to a patchwork system that can make cross-border investment slower and more costly.

A more integrated framework, proponents say, could lower costs for companies seeking funding and broaden the menu of investment options available to savers and institutional investors alike.

Outstanding Questions Remain

Despite the broad agreement, some important details remain unresolved. Trading venues operated by Deutsche Börse, the company behind the Frankfurt stock exchange, may remain outside ESMA’s direct supervision.

Euronews previously reported that Germany had secured an exemption for Deutsche Börse’s domestically focused trading venues, leaving part of the system under regional supervision. The latest announcement did not clarify whether that arrangement will stand.

A Step Forward For The Savings And Investments Union

Dutch Finance Minister Eelco Heinen welcomed the deal, calling it a major advance for the Capital Markets Union and saying Europe had made more progress in 10 months than in the previous 10 years.

The agreement is an important milestone in the Savings and Investments Union, the EU’s broader effort to channel more of Europeans’ savings into investments that can support growth, innovation and competitiveness across the bloc.

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