Artificial intelligence, automation and mounting competitive pressures are prompting companies to rethink their global footprint, workforce structures and resource allocation across markets. According to the “CxO Priorities 2026” study conducted by international management consultancy Horváth, which has been active in Romania for more than 20 years, workforce dynamics are entering a phase of strategic repositioning, with efficiency, access to skills and proximity to growth markets becoming key considerations for C-level decision-makers.

The study shows that workforce adjustments planned for 2026 go beyond a short-term response to cost pressures. In manufacturing industries, companies targeting cost reductions expect an average 5% decrease in headcount, while in the services sector the projected reduction reaches 7%. These developments point to a structural transformation of operating models as companies simplify processes, increase automation and build leaner structures capable of maintaining performance in a more volatile economic environment.

Germany Accelerates Restructuring as Growth Regions Gain Importance

Germany provides one of the clearest examples of this shift. According to the study, 58% of companies headquartered in Germany expect to reduce their workforce in the domestic market by 2030. The largest adjustments are anticipated in the automotive industry (-4.4%), equipment and machinery manufacturing (-2.9%) and construction (-1.4%).

Workforce reductions are not driven by an overall surplus of employees, but by the need to address skills shortages, high costs, competitive pressures and the accelerating pace of technological transformation simultaneously. At the same time, restructuring is no longer limited to production activities. High-value functions such as research and development (R&D) and procurement are also being affected, highlighting the scale of the organizational transformation underway.

The main factors expected to drive workforce reductions in Germany’s manufacturing sector are higher labor costs compared with overseas production facilities (80%), the relocation of capacities outside the German-speaking region of Germany, Austria and Switzerland (49%), and higher costs for other production factors (38%).

Only 16% of German companies expect to increase their headcount by 2030. By contrast, the strongest workforce growth prospects are anticipated in India (93%), China (66%), North America (65%) and Africa (55%), regions benefiting from significant investment and the reconfiguration of global value chains.

Eastern Europe Remains a Region of Balance and Potential

Against this global backdrop, Eastern Europe is emerging as a region of balance. It is neither at the forefront of rapid workforce expansion nor facing significant pressure to reduce headcount. Nearly half of the companies surveyed (49%) expect their workforce in the region to grow by 2030, while 39% anticipate maintaining current staffing levels and only 12% are considering reductions.

This trend confirms the region’s relevance for companies seeking competitive operating structures, proximity to European markets and access to talent in an environment that remains relatively cost-attractive. For companies headquartered in Germany, Eastern Europe is expected to receive 10% of planned CAPEX investment through 2030, pointing to a selective but meaningful allocation of capital amid the restructuring of global value chains.

Jobs Are Not Disappearing — They Are Changing

The study shows that organizations are not focused solely on cutting costs, but also on adapting their skills base to the demands of the new economy. Artificial intelligence and automation are increasingly taking over repetitive tasks, while demand for digital and analytical skills, as well as roles capable of leveraging new technologies in business processes, continues to grow.

“The challenge for companies is not to reduce the number of employees, but to find the right balance between efficiency and human capital development. The organizations that will succeed are those that invest simultaneously in technology and in developing people’s skills, ensuring that digital transformation generates long-term value,” said Maria Boldor, Partner and Managing Director, Horváth Romania.

According to Horváth consultants, competitive advantage in the coming years will depend not only on technology, but also on companies’ ability to adapt their organizations and skills to the new economic reality. In this context, the labor market is not entering an era in which jobs simply disappear, but one of accelerated transformation, where success will depend on balancing automation, innovation and investment in people.

The “CxO Priorities 2026: Rethink Competitiveness in the New Economic Reality” study was based on interviews with more than 1,000 executives (CxOs), including 36% CEOs and 30% CFOs, across 32 countries in Europe, North America, Africa and Asia. Respondents represented 16 industries, while 43% came from global companies with annual revenues exceeding €1 billion.