Europe’s auto industry: shifting gears in a global race.

under pressure, in transition and redefining talent

The automotive industry is undergoing one of the most profound transformations in its history. From the rapid shift toward electrification and sustainability to a surge in digital innovation, today’s automotive employers are rethinking how they attract, engage and retain talent in a fiercely competitive and rapidly evolving market.

structural shifts are reshaping the workforce

The shift to electric vehicles, rising costs and global uncertainty are driving significant labor changes across Europe. 

In Germany, widespread layoffs are affecting manufacturing, white-collar and R&D roles. In the U.K. and France, workforce cuts tied to plant closures and changes in the supply chain point to a broader trend. Italy and Austria are facing more localized, company-specific reductions.

changing fuel systems are reshaping talent demand

Clean, tech-driven mobility is accelerating a shift in fuel technology. Diesel and petrol are steadily declining due to stricter environmental and emissions regulations, while battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs and PHEVs) are gaining traction — driven by advances in battery technology, government incentives and growing demand for low-emission options. 

key findings at a glance

• Electrification and EV innovation are accelerating.
  73% of automotive employers say the move to electric vehicles is their top strategic priority over the next two years.
• Skills shortages are slowing progress.
  64% report difficulty filling roles in engineering, AI and battery technology — critical to keeping the transformation on track.
• The talent gap is widening across all functions.
  From manufacturing lines to digital R&D labs, skilled talent is becoming harder to find and keep.

digital talent is now in the driver’s seat

In markets like the U.K., tech roles are now in the highest demand within automotive hiring. Yet many companies still lag, focusing on legacy skill sets even as digital capability gaps widen.

employment and skill transformation

Data reveals how talent priorities are shifting — and what that means for business strategy. Manufacturing roles are declining. Even as total employment rises, especially in Germany and France.

high attrition

Turnover is highest in program and project management, HR and media — roles that are essential for stability and continuity. This level of churn can disrupt operations and may signal deeper organizational pressure.

technical skill demand

Programming, data and engineering tools are rising fast. People management and traditional sales roles are in decline.

emerging vs. legacy capabilities

Skills like Python, CAE and machine learning are gaining ground. Legacy skills in mechanics and repair are becoming less relevant.