Catherwood LibraryILR School

The governments of Germany, France, Denmark and Britain, among many others in Europe, instituted "short-work furlough programs" during the beginning months of the coronavirus pandemic, effectively nationalizing paycheck support, but those programs are nearing their end. In the coming months, companies such as Airbus, Air France, Lufthansa, Renault, and Debenhams will have to cut hours, jobs, and begin temporary or permanent layoffs. While the economy is improving despite reduced growth rates, company leaders may be looking to implement planned downsizing given the uncertainty over the pandemic's long-term impact. Many of the jobs currently being subsidized are in industries that may be irreversibly damaged for years, such as hotels, restaurants, retail shops and airline industries due to changed consumer demand, and thus local governments may be wary of continuing to provide support. Other programs may also be phased out at the same time, adding more financial pain, such as Britain's halt on forfeiting commercial properties due to unpaid leases, as well as Germany's allowing businesses to postpone filing for bankruptcy. Some employees have protested and continue to protest the upcoming cuts; in May, thousands of employees in Barcelona took to the streets and burned tires to protest Nissan's decision to close a factory, while 1,600 employees plan to protest Daimler's decision to close a Smart car factory in eastern France.