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The current economic climate, characterized by inflation, crises, restructuring, labor market fluctuations, and rapid technological change, presents significant challenges to companies, particularly within the automotive industry. This sector is vulnerable to macroeconomic shifts such as rising material and labor costs, with HR departments playing a critical role in navigating these challenges. This paper explores, via a case study of a multinational company’s Romanian plant, how the Human Resources (HR) department can mitigate the negative impact of economic factors on automotive companies.A multi-method approach, incorporating document analysis, literature review, and interviews with industry experts, is used to examine the relationship between economic indicators and HR strategies. Preliminary findings reveal that financial pressures, including escalating production costs and volatile labor market conditions, directly affect salary policies, employee benefits, and job stability. These pressures often force workforce reductions, which can lower employee morale. In response, the study emphasizes innovative HR strategies, including digital transformation, flexible work arrangements, targeted talent retention programs, and a strong focus on the changing organisational culture. Reorganizing HR strategies with enhanced transparency and effective communication is crucial to sustaining employee wellbeing during restructuring and retaining high-value staff. Additionally, recruitment practices are shifting toward promoting current employees over new hires, and when recruitment does occur, it prioritizes quality over quantity. Ultimately, the paper recommends that HR professionals in the automotive sector employ adaptive strategies that address both short-term financial challenges and foster long-term organisational resilience. Implementing forward-thinking recruitment, retention, and cultural initiatives can help companies remain competitive in a volatile environment while ensuring an engaged and agile workforce.
