GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
Rheinmetall freezes naval hiring plans after Germany scraps frigate programme - Finance news and analysis from Global Banking & Finance Review
Finance

Rheinmetall freezes naval hiring plans after Germany scraps frigate programme

Published by Global Banking & Finance Review

Posted on July 7, 2026

1 min read

· Last updated: July 7, 2026

Add as preferred source on Google
Finance Banking Markets

Rheinmetall Freezes Naval Hiring After Germany Halts F126 Frigate Programme

Impact of F126 Frigate Programme Cancellation on Rheinmetall

Job Expansion Plans Suspended

BERLIN, July 7 (Reuters) - Rheinmetall has halted plans to add 1,000 jobs to its naval shipbuilding division after Germany scrapped the F126 frigate programme last month, a spokesperson for the German defence company said on Tuesday.

Business magazine Capital first reported the stop.

Reasons Behind Programme Cancellation

Delays and Cost Overruns

Berlin scraped the F126 programme after delays and expected cost overruns - dealing a blow to Rheinmetall, which had been tipped to win the contract. The government decided instead to order smaller Meko A-200 frigates from another German firm, TKMS.

Financial Consequences for Rheinmetall

Order Intake Impact

Quarterly Loss Estimates

Rheinmetall estimated that the cancellation will hit its quarterly order intake by about €20 billion, promising a fuller assessment when it reports second-quarter results on August 6.

(Reporting by Miranda Murray, Editing by Linda Pasquini)

Key Takeaways

  • Germany scrapped its six‑ship F126 frigate programme on June 24, 2026, citing delays, soaring costs and contractor risk, opting instead to order up to eight MEKO A‑200 frigates from TKMS, estimated at €11.6 billion for all eight ships. (navaltoday.com)
  • Rheinmetall had been poised to take over as prime contractor after acquiring Naval Vessels Lürssen but the programme’s cancellation cost it a potential €12.8 billion contract, triggered writedowns of around €2 billion, and led to its shares plunging roughly 14–18 %. (gurufocus.com)
  • The cancellation is expected to reduce Rheinmetall’s quarterly ‘nomination’ (order intake) by about €20 billion, with full impact and mitigation plans to be discussed when Q2 results are published on August 6, 2026. (ir.rheinmetall.com)

References

Frequently Asked Questions

Why did Rheinmetall freeze its naval hiring plans?
Rheinmetall froze its naval hiring due to Germany's cancellation of the F126 frigate programme.
How many jobs were affected by Rheinmetall’s decision?
Plans to add 1,000 jobs to Rheinmetall's naval shipbuilding division were halted.
What caused the cancellation of the F126 programme?
The F126 programme was cancelled due to delays and expected cost overruns.
Which company won the order for new frigates instead?
The contract went to TKMS, another German firm, for Meko A-200 frigates.
How much will Rheinmetall's order intake be impacted?
Rheinmetall's quarterly order intake will be hit by about €20 billion.

Tags

Related Articles

Image for Five NATO members seen to spend over 3.5% of GDP on core defence this year, alliance estimates show

Five NATO members seen to spend over 3.5% of GDP on core defence this year, alliance estimates show

Image for Britain's M&S flags higher shareholder returns

Britain's M&S flags higher shareholder returns

Image for Ukraine to pick AI models operated without provider control, official says

Ukraine to pick AI models operated without provider control, official says

Image for EU candidate countries should not expect membership soon, Serbia's Vucic says

EU candidate countries should not expect membership soon, Serbia's Vucic says

Image for Prince Harry's war with UK press is over, and he's lost

Prince Harry's war with UK press is over, and he's lost

Image for Russia's largest oil refinery halts processing after drone attack, sources say

Russia's largest oil refinery halts processing after drone attack, sources say

More from Finance

Explore more articles in the Finance category

Image for Sleepless Ukrainians wonder when Russia will strike next
Sleepless Ukrainians wonder when Russia will strike next
Image for Burnham ally O'Neill says UK's next leader to be "bolder" on investment borrowing
Burnham ally O'Neill says UK's next leader to be "bolder" on investment borrowing
Image for Cuba struggles to restore power to island following nationwide grid collapse
Cuba struggles to restore power to island following nationwide grid collapse
Image for Motorists queue for fuel in Omsk after Ukrainian drones hit Russia's biggest refinery
Motorists queue for fuel in Omsk after Ukrainian drones hit Russia's biggest refinery
Image for UK spends $254 million on long-range Precision Strike Missile programme
UK spends $254 million on long-range Precision Strike Missile programme
Image for Trump says he thinks war in Ukraine will be settled, 'hopefully soon'
Trump says he thinks war in Ukraine will be settled, 'hopefully soon'
Image for Britain's Farage quits parliament in protest, but will stand for re-election
Britain's Farage quits parliament in protest, but will stand for re-election
Image for Norway wealth fund enters strategic partnership with Asana Partners in the US
Norway wealth fund enters strategic partnership with Asana Partners in the US
Image for Canada submarine deal good news for German economy, politicians say
Canada submarine deal good news for German economy, politicians say
Image for Diehl Defence says new version of IRIS-T system could reduce need for Patriot missiles
Diehl Defence says new version of IRIS-T system could reduce need for Patriot missiles
Image for NATO to launch strategic airlift fleet of A400M, Rutte says
NATO to launch strategic airlift fleet of A400M, Rutte says
Image for Onsemi to sell two chipmaking plants to cut costs
Onsemi to sell two chipmaking plants to cut costs
View All Finance Posts