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Abstract: This study examines the relationship between artificial intelligence (AI) adoption in multinational companies and workforce restructuring, with a focus on the effects on household financial distress and perceived welfare strain in Western Romania. The research is set against recent layoffs in Arad and Timiș counties and explores whether AI-driven restructuring creates measurable vulnerability for displaced employees and broader economic pressure in the regional labour market. The study uses a quantitative, cross-sectional survey design. Data were collected through Google Forms over one week in January 2026 from 541 current and former employees of multinational companies in Arad and Timiș counties who had either been laid off or felt at risk of job loss. Respondents evaluated 16 statements on a 5-point Likert scale across four areas: AI adoption and workforce substitution, difficulty of reemployment, household financial distress, and perceived welfare and regional economic strain. Descriptive statistics were analysed using SPSS. The results show consistently high mean scores across all areas, with an overall average of approximately 4.41 out of 5. Respondents largely agree that AI is used to justify or support workforce reductions, that finding new employment after layoffs is difficult, and that job loss leads to significant financial strain, including difficulty covering basic expenses and repaying loans. Many report reliance on unemployment benefits and perceive AI-related layoffs as harmful to the local economy. At the same time, most respondents do not believe AI can fully match the judgment and quality of skilled human work. The findings suggest that AI-driven restructuring creates a chain of effects that extends from firm-level decisions to household financial stress and increased pressure on public welfare systems, with clear implications for regional labour policy and social protection.
