German company Birkle IT has announced a complete layoff of its Tallinn office staff, resulting in all 12 local employees losing their jobs. This decision has caused concern among workers and within the professional community.

Co-founder Jörn Halbauer, quoted by the Delfi portal, emphasized that the office closure is due to changes in the market situation rather than the team’s performance. Nonetheless, the Estonian branch has faced challenges in recent months.

Since the beginning of 2025, the company accumulated a tax debt exceeding 213,000 euros, placing significant financial strain on the office. Additionally, leadership changes occurred with three key managers resigning. The 2024 annual report was also not submitted on time, indicating potential internal management and administrative difficulties.

Birkle IT plans to continue its operations in Germany, where its main office is located, and does not rule out the possibility of returning to Estonia in the future if market conditions improve.

Founded in 2016 in Germany, Birkle IT specializes in IT consulting and software development. The company primarily serves markets in Germany, Austria, and Switzerland (the DACH region), as well as Scandinavia and the Baltics. Since 2017, it operated a nearshore innovation center in Tallinn.

Birkle IT’s core services include IT consulting—conducting workshops and advising on digital transformation, including AI maturity assessments and regulatory compliance. The company develops customized business applications, SaaS solutions, and portal applications focused on user interface and design.

The company also provides migration of applications to cloud platforms such as AWS and Azure and develops new cloud solutions. Projects have included AI-based implementations for optimizing business processes, IT security consulting and implementation, and assisting clients in migrating from legacy mainframe systems to modern platforms.

Birkle IT employed a “bestshoring” model, combining the advantages of outsourcing and onshoring, offering clients flexible and scalable solutions. Its partners include major organizations in insurance, finance, logistics, and healthcare sectors, supporting their digital transformation projects.

The closure of the Tallinn office highlights the difficulties IT companies face amid a rapidly changing economic environment and tax obligations. Still, the company expresses its intention to maintain its business in Germany and considers a potential return to Estonia when market conditions improve.