Restructuring and layoffs in the industry 4.0 era: the role of exposure to advanced manufacturing technologies

Lamperti, F., Lavoratori, K. ORCID: https://orcid.org/0000-0002-0078-4525 and Castellani, D. (2025) Restructuring and layoffs in the industry 4.0 era: the role of exposure to advanced manufacturing technologies. Industrial and Corporate Change. ISSN 0960-6491 doi: 10.1093/icc/dtaf052

Abstract/Summary

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.