Crisis in Germany as giant sausage factory closing in February - 500 jobs at risk

Hundreds of jobs are at risk (Image: Getty)

Some 500 employees have learned their jobs are at risk after one of Germany's biggest sausage factories announced its closure. EWN Wurstspezialitäten announced last week that it would shut its manufacturing facility in Britz in phases, with a complete closure expected by February. Zur Mühlen Group only got the plant in 2023 after it bought Eberswalder.

The sausages, which are extremely popular in Germany, will continue to be manufactured in undisclosed locations in East Germany. The company said that there was "no economically viable alternative" to shutting the plant. At one stage, the factory was huge with its own hairdresser, restaurant, clinic and library. According to a report by The Economist, employees were only told about the decision shortly before it hit the headlines.

Insolvencies in December rose by 15% compared with the same month in 2024, according to Germany's statistics agency. More than 17,600 company insolvencies were reported last year, marking the highest number in 20 years.

This included a number of well-known German brands, signalling a worrying trend for the country's economy.

The company says that it has been facing major difficulties for years. In a statement, EWN said: "More and more international suppliers with lower costs are pushing into the German market.

"Costs for wages, energy, logistics, and operating materials are also constantly rising. These factors have increasingly worsened the economic conditions for the Britz site in recent years."