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European Edition
28th August 2026
 
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THE HOT STORY

Junior staff ‘lose interpersonal skills’ by working from home

Consulting executives want junior staff in the office more frequently to develop key interpersonal skills, arguing human competencies are increasingly valuable as AI takes over their technical work. EY is encouraging junior employees to return to the office but has made no formal changes to remote work policies. Sayeh Ghanbari, EY's UK head of consulting, told the FT: "This change we've seen in the last few years where people have set up their lives to be at home a lot is just not the route to success in the world of AI." KPMG UK's head of advisory Callum Licence agreed, saying learning softer skills directly from others is now "more important than ever." Licence added: "While the benefits of AI will enable more efficient working and a different kind of role over the long term, the human benefits of connectivity and interaction will always remain."
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STRATEGY

Sodexo plans to cut more than 1,000 jobs in France

French food caterer Sodexo is to cut ​more than ​1,000 jobs in its home market ⁠as part ​of an overhaul ​aimed at accelerating growth and boosting ​competitiveness. The company ​said it would eliminate ‌963 ⁠positions, equal to 4% of its French ​workforce, ​and ⁠a separate project ​tied to ​the ⁠group head office could see ​a ​further 134 job losses.
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CYBERSECURITY

Tech giants urge global response to AI cybersecurity threats

More than 100 companies, including tech giants Google, Microsoft, Anthropic and OpenAI, have signed an open letter urging a global effort to strengthen AI-powered cybersecurity threats. "We have a limited window to strengthen cyber defences," the letter reads. "In the coming months, AI-enabled cyber attacks will become far more widespread and sophisticated as models around the world become increasingly capable." The companies call on national governments to provide "capable, defensive AI" and testing to hospitals and water utilities, and on technology companies to aid such efforts. Collectively, tech firms and government "should bring the full weight of their technology, resources, and expertise to this effort," the letter says.
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TECHNOLOGY

Britain 'most exposed to AI disruption'

Analysis of 30 countries by Deutsche Bank suggests that Britain is the most vulnerable major economy to disruption by AI. "If we had to narrow our findings down to one country that stands out, it would be the UK," said Deutsche analyst Shreyas Gopal, who compiled the report. "A high share of the domestic workforce are in roles impacted by AI."

Waymo to test its autonomous ​vehicles in Munich

Alphabet-owned self-driving technology company Waymo has announced tests of its autonomous ​vehicles in Munich in the coming ‌weeks, ahead of a planned commercial ride-hailing service in Germany that it aims to launch toward ​the end of next year. The vehicles would initially drive ⁠manually throughout the city to map local ​roads and test with trained autonomous specialists. Waymo said it plans to create high-skilled local jobs ​as ⁠it prepares to launch in Munich.
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REGULATION

UK firms brace for new misconduct rules

The UK's Financial Conduct Authority (FCA) will implement new rules next month requiring nearly 40,000 firms to report serious non-financial misconduct, including bullying and harassment. The regulations aim to prevent "rolling bad apples" by ensuring that firms disclose misconduct to future employers. Despite some resistance from the industry, the FCA believes these changes could enhance the UK's competitive edge in finance. Jill Lorimer, a partner at law firm Kingsley Napley, said: "Firms dealing with allegations against their people now may want to ensure that these processes are wrapped up before the new regime takes effect."

Poland asks EU to fine Meta €250m over scam Facebook ads

Poland has asked the European Commission to impose a €250m fine on Meta, accusing it of failing to adequately tackle fraudulent advertisements on its platforms. Digital affairs minister Krzysztof Gawkowski said tests by Poland’s national cybersecurity response team identified 122 fraudulent adverts, of which Meta declined to remove 106, or 86.8%, while only ten were removed and six received no response. Meanwhile, Meta has agreed to pay as much as $18bn and introduce sweeping restrictions on how children use Facebook and Instagram as part of a landmark settlement with US states over alleged harms to young users. The deal remains subject to US judicial approval.
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WORKFORCE

Two German airport workers die from malaria

Two employees at Frankfurt airport have died after contracting malaria from a mosquito likely carried on an incoming flight, said the city's health authority. The Robert Koch Institute (RKI) identified the Anopheles mosquito as the source. Malaria is rare in Germany, complicating diagnosis and treatment. The RKI says the country's last airport-linked malaria outbreak was in 2023. Four remaining infected employees are in hospital, and mosquito traps have been installed to capture specimens for genetic testing.
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ECONOMY

UK business confidence rises under Burnham

Business confidence in the UK rose to 63% in the second quarter, up from 57% in the previous three months, as firms reacted positively to Andy Burnham becoming prime minister. Barclays said 56% of 1,000 business leaders surveyed planned to increase capital spending over the next year, with training and research and development the main priorities. Some 60% said further devolution would improve economic opportunities, while just over a third said Burnham's proposed No 10 North would benefit their business.

Germany on track for strongest GDP growth since 2022

Better than expected second-quarter growth and improved business optimism means Germany is on track for GDP growth of 1.7% for 2026, the strongest since 2022.
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CORPORATE

Weak US and China demand set to weigh on growth at Pernod Ricard

Pernod Ricard has reported a 3.9% decline in full-year organic sales, slightly worse than the 3.7% fall expected, as sales dropped 14% in the US and 19% in China amid weaker consumer demand. Profit from recurring operations fell 5.2%, while the dividend was held at €4.70 per share. The Absolut and Martell owner expects organic sales to remain broadly stable in fiscal 2027 and now anticipates growth at only the lower end of its 3%-6% target range through 2029, with the US not expected to return to growth until after then. Pernod also expects to complete its €1bn restructuring programme a year ahead of schedule, having cut around 3,600 jobs since FY24.
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INTERNATIONAL

Deloitte to pay $21.5m to settle US government probe over DEI

Deloitte is to pay $21.5m ‌to settle U.S. Department of Justice claims that it discriminated against employees and job applicants on the basis of race or sex. Associate Attorney General Stanley Woodward said the settlement was another example of how the DOJ was “eliminating woke, unconstitutional practices from American workplaces,” adding: “Merit drives opportunity and promotion. Not someone’s sex or race.” The department said that business units within the audit giant received monthly summaries tracking "demographic goals" and alleged ‌that ⁠Deloitte's Partners, Principals and Managing Directors were evaluated, in part, based on their contributions to helping the firm achieve its workforce composition goals. In a statement, Deloitte said it was pleased to have resolved the matter “to avoid the cost and distraction of protracted litigation.”
 
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