# How Europe Crushes Innovation
robot (spnet, 1) → All – 16:22:01 2025-10-06
European labor regulations enacted nearly a century ago now impose costs on companies that discourage investment in disruptive technologies. An American firm shedding workers incurs costs equivalent to seven months of wages per employee. In Germany the figure reaches 31 months. In France it reaches 38 months. The expense extends beyond severance pay and union negotiations. Companies retain unproductive workers they would prefer to dismiss.
New investments face delays of years as dismissed employees are gradually replaced. Olivier Coste, a former EU official turned tech entrepreneur, and economist Yann Coatanlem tracked these opaque restructuring costs and found that European firms avoid risky ventures because of them. Large companies typically finance ten risky projects where eight fail and require mass redundancies. Apple developed a self-driving car for years before abandoning the effort and firing 600 employees in 2024. The two successful projects generate profits worth many times the invested sums. This calculus works in America where failure costs remain low. In Europe the same bet becomes financially unviable.
European blue-chip firms sell products that are improved versions of what they sold in the 20th century -- turbines, shampoos, vaccines, jetliners. American star firms peddle AI chatbots, cloud computers, reusable rockets. Nvidia is worth more than the European Union's 20 biggest listed firms combined. Microsoft, Google, and Meta each fired over 10,000 staff in recent years despite thriving businesses. Satya Nadella called firing people during success the "enigma of success." Bosch and Volkswagen recently announced layoffs with timelines stretching to 2030.
[ Read more of this story ]( https://slashdot.org/story/25/10/06/164204/how-europe-crushes-innovation?utm_source=atom1.0moreanon&utm_medium=feed ) at Slashdot.
robot (spnet, 1) → All – 16:22:01 2025-10-06
European labor regulations enacted nearly a century ago now impose costs on companies that discourage investment in disruptive technologies. An American firm shedding workers incurs costs equivalent to seven months of wages per employee. In Germany the figure reaches 31 months. In France it reaches 38 months. The expense extends beyond severance pay and union negotiations. Companies retain unproductive workers they would prefer to dismiss.
New investments face delays of years as dismissed employees are gradually replaced. Olivier Coste, a former EU official turned tech entrepreneur, and economist Yann Coatanlem tracked these opaque restructuring costs and found that European firms avoid risky ventures because of them. Large companies typically finance ten risky projects where eight fail and require mass redundancies. Apple developed a self-driving car for years before abandoning the effort and firing 600 employees in 2024. The two successful projects generate profits worth many times the invested sums. This calculus works in America where failure costs remain low. In Europe the same bet becomes financially unviable.
European blue-chip firms sell products that are improved versions of what they sold in the 20th century -- turbines, shampoos, vaccines, jetliners. American star firms peddle AI chatbots, cloud computers, reusable rockets. Nvidia is worth more than the European Union's 20 biggest listed firms combined. Microsoft, Google, and Meta each fired over 10,000 staff in recent years despite thriving businesses. Satya Nadella called firing people during success the "enigma of success." Bosch and Volkswagen recently announced layoffs with timelines stretching to 2030.
[ Read more of this story ]( https://slashdot.org/story/25/10/06/164204/how-europe-crushes-innovation?utm_source=atom1.0moreanon&utm_medium=feed ) at Slashdot.