From Pretzels to Powertrains: Germany’s Layoff Wave Spans Bakeries, Auto Plants, and Chemical Giants
Published on 06/27/2026 at 19:32 | Redaktion boerse-global.de
Germany’s industrial landscape is shedding jobs at a pace that reaches from the factory floor to the bakery counter. More than 100,000 positions at Volkswagen alone may be on the line, while a host of smaller employers — including a long?standing bakery chain — are shutting down production entirely.
In the city of Essen, the Lieken baked?goods company will close its plant in the Borbeck district by the end of 2026. Roughly 120 employees will lose their jobs. Management cited a difficult market environment and high energy costs as the reasons; production at the site is no longer profitable.
The plant does not have a works council. The Food, Beverages and Catering Union (NGG) is now demanding full transparency from the company. “We want to examine whether alternatives to the closure exist,” the union said, adding that its goal is to preserve jobs in the region.
Lieken is not alone in feeling the squeeze. Two other recent cases illustrate the breadth of the crisis in the baking sector:
- Rackls Backstubn: The insolvent Munich?based chain was sold. Competitors such as Wünsche and Wimmer are taking over 17 of its branches. Ten locations and the company’s headquarters in Olching will close. Approximately 470 employees are affected.
- Bäckerei Reinmuth: After more than 120 years in business, this traditional Karlsruhe bakery will shut its doors at the end of July 2026. The owner cited a lack of succession and health problems. A competitor is expected to take on the majority of the workforce.
Meanwhile, the industrial sector is undergoing far?reaching restructuring. Volkswagen, according to a June 2026 report, is considering a far tougher cost?cutting programme than previously announced. Instead of removing 50,000 positions, the carmaker may eliminate up to 100,000 of its global workforce of 657,000. Plants in Hanover, Zwickau, Emden and Neckarsulm are expected to be most affected. The supervisory board will likely discuss the matter on 9 July.
The chemical company Evonik is also cutting deeper. Despite raising its profit forecast, it plans to shed another 3,200 jobs in response to ongoing cost pressure.
Supplier Signata is closing its plant in Diepholz by the end of 2026. Production will move to Bulgaria; only sales and development will remain in Germany. Sixty?four employees will lose their positions.
Across sectors — from food production to automotive manufacturing and chemicals — the German economy is in the midst of a sweeping transformation driven by technological change and persistent cost pressures.
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