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Restructuring and job cuts: what decision-makers should watch

Briefing: In Germany restructurings often proceed through negotiations with works councils and socially responsible programmes.

By the editors14 June 20224 min read

In Germany restructurings often proceed through negotiations with works councils and socially responsible programmes.

For executives, the main question regarding “Restructuring and job cuts” is their own exposure: which costs, revenues and financing conditions depend on it, directly or indirectly?

A proven approach is to run scenarios and monitor leading indicators regularly. That puts decisions on a solid footing without reacting to every headline.

The debate around “Restructuring and job cuts” is not new, but it has grown more urgent since 2022. The energy price shock, the turn in interest rates and geopolitical tensions have called many old certainties into question.

Economists and industry bodies assess the situation in different ways. Most agree, however, that reliable conditions for investment decisions are crucial.