Is the automotive industry facing its end? A deep dive into the 2024-2025 shifts

September just started and there are some ‘market’ signals which deserve a necessary reflection. As we move through the last part of 2024, what we noted is that employment market in Poland and across Europe faces significant challenges, with – in many cases- reductions in the workforce and a shift in key sectors like automotive. Recent reports indicate that large-scale layoffs are occurring across industries as companies restructure to deal with evolving market conditions.

In this article you can find some interesting insights: https://www.money.pl/gospodarka/nowa-mapa-zwolnien-fala-redukcji-etatow-przetacza-sie-przez-polske-7067781680540288a.html

The automotive industry, specifically, is undergoing changes driven by the rise of electric vehicles (EVs) and other market pressures. For example, Volkswagen has announced potential closures in Germany due to reduced demand and profitability concerns, though EV production is only one factor in these strategic decisions: https://www.motor1.com/news/732365/vw-could-close-german-factories/

According to Polish labor data, over 138,000 jobs were lost between January 2023 and mid-2024, signaling significant shifts in employment. However, the unemployment rate has remained pretty low and stable due to labor shortages and demographic trends. This suggests that while roles are being eliminated, new opportunities are arising for those with the right skills.

We discussed with some of our clients and there are certain common implications for Employers. For instance employers need to focus on upskilling their workforce to adapt to new technologies, including AI and automation. This can help mitigate the impact of workforce reductions. But not only, indeed what can make a real difference in facing such challenging time is the capability of strategic planning: businesses must reassess their organizational structures and focus on sustainable growth, which can include adopting more flexible work schedules or reducing non-essential roles without compromising operational efficiency.

We are trying to promote our LeanPeople approach because we are sure that by adopting our method, companies can improve efficiency and productivity, allowing them to achieve more with fewer resources. This approach emphasizes process optimization and workforce engagement, reducing waste and helping adapting to economic pressures without drastic layoffs.

As Headhunting company, of course we have also some suggestions for employees/ candidates; in our view employees should be proactive in reskilling to meet new market demands. Sectors such as green energy, AI, and sustainable technologies are set to grow in the coming years, offering new opportunities. But also, being open to geographical and sectoral mobility can provide new career pathways. With certain industries contracting, expanding skill sets and considering roles in emerging sectors can be crucial. There is also a need for more adaptability and willingness to improve own performance to contribute to company’s success. Being really engaged is crucial. This is something that work on 2 sides: employers should focus on creating a positive culture, climate, a real D&I policy, while employees should be committed to perform and deliver results.

So far for the 2025, businesses and workers alike must remain agile. Employers can mitigate risks by focusing on efficiency and lean processes, while employees should prioritize skill development in high-demand areas. The future workforce will need to balance technological fluency with the flexibility to adapt to evolving job roles and proper mindset.