For over a decade, business services in Poland have been one of the key drivers of foreign direct investment into Central and Eastern Europe. Cities such as Kraków, Warsaw, Wrocław, and the Tricity (Gdańsk–Gdynia–Sopot) have become well-established European hubs for finance, IT, data analytics, business process outsourcing (BPO), and shared services centers (SSC).
However, 2025 has brought a noticeable slowdown and a wave of layoffs – particularly visible in Kraków. Does this signal a structural weakening of the sector? Or are we witnessing a natural transformation that, paradoxically, creates new opportunities for well-positioned foreign investors?
Layoffs in Kraków – scale and market context
According to data from the Municipal Labour Office in Kraków (Grodzki Urząd Pracy), between January and November 2025, collective redundancies affected approximately 2,860 employees across 33 companies. For the full year, the figure may have approached 3,000.
The largest reductions occurred in industries directly linked to business services in Poland, including:
- accounting and tax advisory services,
- data processing and hosting,
- information technology (IT),
- manufacturing of electrical components.
In one case, a single company announced plans to eliminate as many as 1,200 positions.
Importantly, the Kraków labor market has experienced fluctuations before. In 2020, layoffs affected 5,400 employees, and in 2022 more than 4,000. The current situation is therefore not unprecedented but reflects the cyclical nature of global service markets.
Why are business services in Poland undergoing transformation?
Automation and artificial intelligence are redefining the operating model
One of the key drivers of change is the rapid advancement of automation and AI. In 2025, a significant portion of layoffs concerned IT roles and accounting processes.
In practice:
- repetitive financial processes are increasingly automated,
- data analysis is supported by advanced algorithms,
- demand for purely operational roles is declining.
This does not mean the sector is shrinking. Business services in Poland are not disappearing — they are evolving.
Demand is growing for:
- business analytics,
- cybersecurity,
- risk management,
- compliance (including EU regulatory compliance),
- digital transformation expertise.
The shift is from volume-based operations to knowledge-intensive services.
Rising labor costs and global optimization strategies
As Poland’s economy continues to develop, labor costs are steadily increasing. Higher salaries, annual minimum wage adjustments under Polish law, and a strengthening Polish złoty have led the most cost-sensitive processes to be relocated to India or Southeast Asia.
Many multinational corporations are currently expanding operational centers in cities such as Hyderabad or Bangalore, where labor costs remain significantly lower.
In the long term, this means that Poland’s competitive advantage is no longer based primarily on low costs, but increasingly on high-level expertise, EU regulatory alignment, and service quality.
For long-term investors, this is a signal to build advanced, value-driven operations rather than large-scale, cost-driven structures.
The end of mass outsourcing – the rise of competence centers
The first wave of investment in business services in Poland was based on a simple model: large teams, standardized processes, and cost optimization.
Today, we observe:
- reduction of operational positions,
- growing demand for highly specialized experts,
- expansion of R&D and technology centers.
This marks a natural maturation phase of the Polish business services market.
Youth unemployment – systemic challenge or investment potential?
In Kraków, unemployment among individuals under 30 increased by nearly 40%. In 2025, Poland recorded one of the highest increases in youth unemployment in the European Union.
The causes are not excessive expectations among younger generations, but rather:
- a skills mismatch with evolving market requirements,
- automation of entry-level positions,
- rising employer expectations regarding experience.
From an investor’s perspective, however, this also means access to a pool of well-educated young professionals who can be rapidly upskilled for more advanced, high-value processes.
Business services in Poland – what should foreign entrepreneurs conclude?
1. This is a moment for selective expansion, not market exit
The current changes are part of a global transformation of the services sector. Poland continues to offer:
- regulatory stability within the EU framework,
- a predictable legal system aligned with EU directives,
- developed office infrastructure,
- a strong academic base,
- a highly skilled technology workforce.
Poland remains one of the most stable jurisdictions in Central and Eastern Europe for foreign investment.
Access to experienced specialists
Corporate layoffs have released a significant number of professionals with experience in:
- global financial structures,
- international project management,
- ERP system implementation,
- advanced data analytics.
For new investors, this translates into lower team-building costs and a shorter time to operational launch.
Kraków remains a strong business hub
Despite media comparisons to a “second Detroit,” Kraków continues to offer:
- well-developed business infrastructure,
- an international working environment,
- extensive experience in supporting global operational centers.
Transformation does not mean decline — it means a transition toward a more advanced economic model.
Is it worth investing in business services in Poland in 2026?
From a strategic perspective — yes, provided the positioning is correct.
Poland is gradually losing attractiveness for the simplest, highly standardized operational processes. However, it remains highly competitive for:
- analytics centers,
- digital transformation hubs,
- regional finance centers,
- R&D projects,
- operations requiring full compliance with EU regulations.
This direction is more stable and less exposed to cost competition from Asia.
Conclusion: transformation, not crisis
The wave of layoffs in Kraków does not signal the end of the sector. Business services in Poland are entering a phase of specialization and maturity.
For foreign investors, this represents:
- an opportunity to enter the market during a correction phase,
- access to experienced talent,
- the chance to build higher value-added operations,
- investment in a stable EU market.
Economic history shows that the most attractive investment opportunities often arise during transitional periods. Poland remains one of the key business destinations in Central and Eastern Europe — and its business services sector is currently redefining its role in the global economy.
