The world is facing major challenges. First, the pandemic paralyzed large parts of the economy, which many states and employers in Europe coped with at great cost and effort. Just as the states were reducing the pandemic related restrictions, the economy was returning to its growth path and the unemployment rate in many states was approaching pre-crisis levels, the war in Ukraine began. In addition to the continuing disruption of supply chains, energy prices are rising rapidly. Companies in Europe are currently facing very significant price
increases, which they cannot pass on to their customers and must reduce their costs.
In this context, companies are forced on the one hand to reduce labor costs and, on the other hand to increase wages due to rising prices. In some countries, wages are under additional pressure due to the shortage of skilled workers and massive increases in state minimum wages.
Andersen lawyers from different European countries explain potential strategies aimed at cost reduction and how to face the economic challenges with minimum impact for multinational companies operating in Europe.