Bahattin Gonultas and Emir Yildirim
12 November 2026•Update: 12 November 2026
From car factories to bank offices, European companies are cutting jobs as weakening demand, US trade barriers and Chinese competition add to pressure to reduce costs and automate operations.
The cuts extend beyond manufacturing to transport, finance, telecommunications and hospitality. Some affect European operations, while others are part of global restructuring plans spanning several years.
The pressures differ across sectors. Industrial companies are adapting production to changing demand, while banks and insurers are increasingly turning to artificial intelligence (AI) to handle work previously performed by administrative staff.
Automakers face costly transition
The auto sector is bearing the brunt of the cuts as established manufacturers grapple with high production costs, slower electric vehicle (EV) adoption and competition from Chinese rivals.
For manufacturers and their suppliers, the challenge is to finance new technologies while keeping existing operations profitable.
Volkswagen’s restructuring plans envisage cutting around 100,000 jobs worldwide by 2030, including previously announced reductions, as the German group responds to changing demand and intensifying competition.
Meanwhile, German supplier Bosch has announced plans to cut more than 13,000 jobs as it seeks to improve competitiveness.
Fellow supplier ZF Friedrichshafen plans to eliminate 14,000 positions as part of cost-cutting efforts, while Schaeffler has announced 3,460 job cuts in Europe amid pressure on profit margins.
French automaker Renault is reducing its global engineering workforce by 2,400 positions as part of a restructuring.
Heavy industry scales back
Heavy industry and energy companies are also shedding jobs as they restructure longstanding operations and adapt to the transition away from fossil fuels.
German industrial group Thyssenkrupp plans to cut 11,000 jobs as it streamlines its operations.
Romanian energy producer Complexul Energetic Oltenia is reducing its workforce by 1,700 employees amid decarbonization and restructuring efforts.
Elsewhere in Romania, Damen Shipyards Mangalia announced plans to dismiss 1,011 employees after entering bankruptcy proceedings.
Transport and logistics under pressure
The companies moving goods and passengers are also reducing their workforces, with pressures ranging from rising operating costs to uncertainty over global trade.
Germany’s main rail company, Deutsche Bahn, plans to cut 30,000 jobs as it seeks to bring costs under control.
Swiss logistics group Kuehne+Nagel has announced plans to eliminate 2,000 positions worldwide amid excess capacity and geopolitical risks.
Dutch airline KLM also plans to cut 1,000 jobs in the first phase of a broader cost-reduction strategy.
AI reshapes office work
In banking and insurance, automation is changing the calculation. Companies are looking to simplify processes and use AI for tasks traditionally handled by administrative and back-office employees.
British multinational bank Standard Chartered plans to eliminate more than 7,000 corporate-function roles by 2030 as it expands automation and AI. The reductions affect its global operations, rather than Europe alone.
UK-based Barclays has also announced plans to cut 5,000 jobs worldwide as it restructures its operations.
German insurer Allianz Partners plans to reduce its workforce by 1,800 employees as it expands the use of AI and automated systems.
Telecom cuts reach stores and offices
Telecommunications companies are also trimming their workforces, with reductions extending beyond administrative roles to their physical retail networks.
Late last year, Telefonica Spain finalized a massive voluntary redundancy plan resulting in at least 4,525 exits and an estimated 5,500 total departures.
O2 Telefonica Germany plans to cut 1,100 jobs and close 60 stores.
British telecom group Vodafone has also announced reductions affecting 1,200 jobs across its European operations, alongside plans to eliminate 2,300 positions in Germany over the next two years.
Delivery and hospitality rethink operations
Food delivery, hospitality and catering businesses are also restructuring, with changes affecting both staffing levels and how services are provided.
Polish online food delivery platform Pyszne.pl, operating under Just Eat Takeaway, said it will eliminate 5,000 positions and downsize operations to boost efficiency.
British hospitality group Whitbread is cutting 3,800 jobs in the UK and Ireland to reduce costs.
French catering and facilities management company Sodexo plans to eliminate 1,100 positions.