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.