As economic pressures continue into 2026, multinational employers are once again planning large-scale workforce reductions. Many approach these reductions as they would in the United States—as coordinated, single-day events with immediate terminations, access cutoffs, and organizational announcements.

• Multinational employers planning workforce reductions must complete required consultations before making any global announcements or cutting system access.
• Many countries require mandatory government notifications even for single terminations, not just mass layoffs.
• A global reduction in force is not a single event—it is a coordinated series of local processes, each with its own rules, timelines, and execution formalities.

This U.S.-centric approach, when implemented outside the United States, routinely fails and the consequences can be severe. Invalid terminations, injunctions, penalties, and significant liability result when employers overlook the legal requirements that govern dismissals in other jurisdictions. The following are the five most common and costly mistakes.

Mistake #1: Announcing and Acting Before Consultation Is Complete

Many employers do not realize that in jurisdictions with works councils, they cannot make a final decision or communicate that decision until consultation is complete. This means no global announcements, no cutting of system access, no updating of organizational charts, and no notifying managers or colleagues.

Consultation must occur...

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