[Xylakant]

Traditionally, large scale layoffs are hard and avoided, especially in industries where unions are strong. If required they are usually negotiated with the union. Still, there are often ways to avoid a layoff. The union sometimes agrees on a temporary pay cut across the board. There are some legal instruments that help a company in a crisis, Kurzarbeit is one of the most german one: The company can under some circumstances cut work time (and salaries) for a specified group of employees and the state will cover for a certain percentage of the wage loss. This allows the company to retain staff in an unexpected slow in business and be ready and fully staffed when orders start rolling in. In effect a giant insurance pool.