It really depends on the areas. On white collar jobs yes. It is more frequent in blue collars workers because it is easier to close completely or partially (several lines) in a factory than having to manage different vacations schedules. Constructions companies also do stop because you usually need most workers available + hot weather makes it harder anyway. Small/familiar companies also do it frequently because it doesn't make sense to work if you have dependencies on a number or unavailable persons.

It's not entirely uncommon, even companies like Volkswagen have 3 weeks of summer vacation. Strictly speaking, some people still work there for maintenance, etc. that can't be done while making cars, but the majority is on vacation.

I know a handful of companies with a week of mandatory Christmas vacation as well (but there's typically not too many working days between Christmas and New Years' either way).