Panoramic: Automotive and Mobility 2025
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Managing employee costs in a changing business environment
Decision-making at a time of economic uncertainty
04 September 2025
At a time of global economic and geo-political uncertainty, employers may need to reduce employee-related costs for a period, while wanting to retain the ability to respond quickly when business confidence improves.
Our multi-jurisdiction guide to managing economic costs in a changing business environment highlights some of the short, medium and longer term options for achieving those objectives. These identify ways for employers to protect their business while operating within appropriate legal frameworks.
In this article we give a flavour of some of the issues. You can access the full guide for more comprehensive information and country-specific considerations in Germany, Italy, the Netherlands, the United Kingdom and the United States.
For each jurisdiction the guide uses colour coding to identify:
- Green: “Quick wins” such as overtime and recruitment freezes that can be implemented relatively quickly;
- Amber: Actions that preserve the workforce and maintain flexibility but which take longer to implement, such as short-term work or temporary salary reductions; and
- Red: Longer term measures designed to address more sustained economic headwinds, but which involve more time or legal risk.
Next steps
- Read our more detailed global guide to managing employee costs in a changing business environment.
- For more information about individual dismissals and consultation requirements in mass redundancy/ lay off situations, visit our global employment guide.
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