Part 7/9:
As insolvency looms, companies face critical decisions: undergo stringent restructuring or resort to liquidation. The overarching narrative suggests the latter may become a prevalent choice, with European firms more inclined to accede to the harsh realities of market competition. Restructuring, however, comes at a cost, notably to the workforce, as more firms resort to significant layoffs and site closures across the board.
According to Jonas Ehart, an automotive expert, the tone surrounding insolvency proceedings is changing. It reflects an increasingly stringent approach, where businesses attempt to shed excess weight by eliminating robust employees to stay afloat, taking advantage of Germany’s protective labor laws through the insolvency pathway.