German Red Cross in Braunschweig reports bankruptcy – 450 jobs threatened!

German Red Cross in Braunschweig reports bankruptcy – 450 jobs threatened!

A wave of consternation is making waves in the Braunschweig-Salzgitter region: The German Red Cross (DRK) has filed for bankruptcy. As Bild reports, more than 450 jobs are at risk, a situation that directly affects many people in the region.

The reasons for this economic hardship are diverse. The corona pandemic has brought massive economic difficulties, while at the same time the costs of energy and personnel have skyrocketed. It is particularly regrettable that the subsidiaries “Care and Support” and “Springboard” also have to suffer from these conditions. On June 18, 2025, the Braunschweig District Court lifted the insolvency in self-administration and gave the DRK the opportunity to carry out the restructuring on its own responsibility under the supervision of an administrator. Those responsible hope that business operations will continue to run without restrictions for the time being while a restructuring concept is in progress.

A strong foundation, but also great challenges

The history of the DRK district association goes back to 1948. Since then, the organization has developed into an important provider of social services, including counseling and youth centers, daycare centers, nursing homes and two rescue stations. The association generates around 20 million euros annually. Despite this solid foundation, financial difficulties began as early as 2023, leading to the closure of a nursing home. However, a planned sale process of a large building, which was intended to contribute to stabilization, did not go as planned and was unexpectedly delayed.

Nico Seefeldt Kazazi, board member of the district association, is confident despite the adverse circumstances. He sees good opportunities for a sustainable restructuring of the DRK, as NDR reports. The salaries of the approximately 450 affected employees are secured by insolvency money from the employment agency, so that these employees should not get into financial difficulties for the time being.

Social impact and the role of the pandemic

The corona pandemic not only had an impact on the DRK, but also affected many companies in Germany. As the Bundesbank found, bankruptcies actually fell in 2020, but the possible risk that bankruptcies in certain sectors were suppressed is high. Companies like DRK must now overcome these accumulated challenges while trying to maintain the quality of their services.

The situation remains tense, while those responsible at the DRK are trying to smooth things over with a restructuring concept that has been developed. The hope is that the company can emerge from this crisis stronger - not only for its employees, but also for the numerous people who rely on the DRK's services.