Restructuring and Layoffs in the Industry 4.0 Era: The Role of Exposure to Advanced Manufacturing Technologies

This study examines how Industry 4.0 advanced manufacturing technologies (AMTs) influence restructuring decisions. Analyzing data from European manufacturing firms (2013–2020), we find that greater AMT exposure correlates with a lower overall likelihood of restructuring. When restructuring occurs, AMTs reduce closure probabilities while increasing downsizing likelihood and minimizing layoffs. AMT exposure is measured through industry-level adoption and firm-level capital intensity. This study emphasizes the need to consider both the benefits and disruptions of automation in shaping strategies.