Horváth: Companies Globally Recalibrate Their Workforce as India, China and North America Attract New Talent Investments

• In Eastern Europe, 49% of companies expect their workforce to grow by 2030, 39% anticipate maintaining current levels, while 12% are considering staff reductions
• Globally, workforce expansion is expected to be strongest in India (80%), North America (63%) and China (59%), driven by the reshaping of value chains and investments in high-growth regions
• The transformation of operating models does not signal the disappearance of jobs, but rather an accelerated reallocation of activities and skills, as AI, automation and cost pressures reshape how companies create value

Artificial intelligence, automation and increasing competitive pressure are prompting companies to rethink their global footprint, workforce structure and the way they allocate resources across markets. According to the “CxO Priorities 2026” study conducted by Horváth, an international management consulting firm with more than 20 years of activity in Romania, workforce dynamics are entering a phase of strategic repositioning in which efficiency, access to skills and proximity to growth markets are becoming key criteria for C-level decision-making.

The study shows that workforce adjustments planned for 2026 reflect more than a short-term response to cost pressures. In manufacturing industries, companies with cost-reduction targets anticipate an average 5% decline in headcount, while in the services sector the estimated reduction reaches 7%. These developments point to a structural transformation of operating models, as companies simplify processes, increase automation and develop leaner structures capable of supporting performance in a more volatile economic environment.

Germany accelerates restructuring, while growth regions gain importance

Germany best illustrates this shift. According to the study, 58% of companies headquartered in Germany expect to reduce their workforce in the local 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 excess of employees, but by companies’ need to address simultaneously skills shortages, high costs, competitive pressures and the acceleration of technological transformation. At the same time, restructuring is no longer focused exclusively on production activities, but also on high-value-added functions such as research and development (R&D) and procurement, confirming the scale of the organizational transformation underway.

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

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

Eastern Europe remains a region of balance and potential

Against this global backdrop, Eastern Europe is positioned as a region of balance: it is neither at the forefront of accelerated expansion nor facing significant workforce-reduction pressures. Almost half of the companies surveyed (49%) expect their workforce in the region to grow by 2030, 39% anticipate maintaining current 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 cost-attractive. For companies headquartered in Germany, Eastern Europe accounts for 10% of planned CAPEX through 2030, indicating a selective but relevant allocation of investment amid the restructuring of global value chains.

Jobs Are Not Disappearing — They Are Changing

The study shows that organizations are not focused solely on reducing costs, but also on adapting skills to the new requirements of the economy. Artificial intelligence and automation are taking over an increasing number of repetitive tasks, while demand for digital and analytical skills, as well as for 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 the development of human capital. The organizations that will succeed will be those that invest simultaneously in technology and in developing people’s skills, ensuring that digital transformation generates long-term value,” says Maria Boldor, Partner and Managing Director, Horváth Romania.

According to Horváth consultants, competitive advantage in the coming years will not be determined by technology alone, but also by companies’ ability to adapt their organizations and skills to the new economic reality. In this context, the labor market is not entering a phase of job disappearance, but rather one of accelerated transformation, in which success will depend on striking the right balance between automation, innovation and investment in people.

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

About Horváth

Horváth is one of the leading independent international management consulting firms, with a strong presence in the Romanian market since 2005. Founded in Stuttgart in 1981 by Prof. Dr. Péter Horváth, a pioneer of controlling in Germany, the company now employs more than 1,400 people worldwide. Horváth has offices in Germany (Berlin, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart), Austria, Romania, Switzerland, Hungary, Denmark, Saudi Arabia, the United Arab Emirates and the United States, while also providing consulting services to clients globally. Horváth is a member of Cordence Worldwide, the leading global alliance of independent management consulting firms, bringing together nearly 70 offices across 24 countries on three continents.

In the local market, Horváth has been providing high-level consulting services for 20 years. During this period, the Romanian team has delivered more than 600 projects, with a combined value of more than €115 million, for companies in industries including energy, banking and financial services, courier and logistics, retail and FMCG, pharmaceuticals, the public sector and others.