Four Imperatives For Headcount Restructuring In Europe

Several myths and stereotypes surround headcount restructuring projects in Europe. Headcount restructurings must factor in local labor law and co-determination rights, which vary significantly across the continent. As a result, multinational employers often fear the cost and complexity of dealing with restructurings at their European operations and subsidiaries.

Typical drivers of anxiety include:

• The material cost of restructuring and severances
• Process risks due to the involvement of local Works Councils and Unions
• Reputational risks arising from public or stakeholder reactions
• Local management resistance, stemming from inexperience or past failure.

The current macroeconomic environment puts companies under significant pressure to transform and respond to disruptive forces, often requiring adjustments to their employee structure. From our deep restructuring experience, we know that complexity is manageable – with thorough preparation and