A gleaming nine-story office complex dominating Wadowicka Street in southern Krakow has become an unlikely symbol of Poland’s shifting economic fortunes. The expansive glass structure—its floors covering the space of more than 90 tennis courts—stands nearly empty just two years after opening. As Bloomberg reports, the silence inside reflects a deeper transformation sweeping through one of Europe’s fastest-growing economies: the accelerating impact of artificial intelligence on white-collar jobs.
Poland, whose GDP recently surpassed $1 trillion after doubling in a decade, has been Europe’s top magnet for global business services in IT, finance, and HR. Krakow alone accounts for roughly a fifth of the nation’s business process outsourcing (BPO) jobs. But as AI becomes more capable, many of those roles—from data processing and web hosting to accounting and tax consultancy—are among the first to be automated or shifted abroad. Rising wages have compounded the pressure, eroding the labor-cost advantage that once powered Poland’s ascent.
International firms that once expanded aggressively in the city are now pulling back. Shell, Heineken, HSBC, and UBS are among major employers cutting positions, with many shifting simpler tasks to lower-cost centers in Asia. According to Krakow’s employment office, 32 companies announced plans by the end of October to dismiss a combined 4,195 employees—a 70% jump compared with all of 2024. Bloomberg notes that Shell Polska, long one of the city’s largest employers, is filling far fewer new roles and focusing mainly on highly specialized positions.
The shift marks what experts see as a turning point for Poland. “Poland is no longer an up-and-coming economy competing with cheap labor,” said Andrzej Kubisiak of the Polish Economic Institute. While AI’s overall impact on Poland’s labor market remains limited, the services sector—where Krakow has thrived—is at the sharpest edge of technological disruption.
Despite tourists crowding the city’s medieval Old Town, locals describe a growing sense of anxiety. Aleksandra, 35, who works in customer operations at a multinational firm, told Bloomberg that a decade of abundant job opportunities has abruptly reversed. “We wouldn’t ask ourselves if we’d find a job, but when,” she said. “Now people are afraid to change jobs.”
Cost pressures are driving much of the retreat. Heineken is relocating around 400 roles to India, while HSBC says AI has replaced some functions and more complex roles are being created in Poland. Local tech company Comarch is using the softer labor market to recruit more specialized employees, according to private equity firm CVC Capital Partners.
The ripple effects stretch far beyond office towers. Cafés, restaurants, and boutique shops that catered to well-paid corporate staff are closing or struggling. In Kazimierz, Krakow’s historic Jewish quarter, entrepreneur Zuzanna Jankiewicz shut her artisanal food store after customers cut back spending. “The system is disrupted,” she said, noting that even in a fast-growing economy, the atmosphere is uneasy.
Commercial real estate is also under strain. Office vacancy in Krakow reached 18.6% in the third quarter of 2025, up from 17.3% earlier in the year. Developers say many companies are downsizing or abandoning multi-year leases. “Most tenants, including large ones, are reducing the space they rent or giving it up altogether,” said Konrad Hernik, CEO of Mix Group.
Property prices—which surged 174% in Krakow over the past decade—have begun to slide for the first time this year. Analysts warn that job insecurity among accountants, analysts, and IT workers could dampen demand further. “Few of them will decide to buy an apartment or a new car,” Hernik said.
Still, city leaders insist Krakow is not on a path toward decline. Deputy Mayor Stanislaw Mazur rejects comparisons to Detroit, emphasizing that Krakow is rapidly adapting. The prestigious Jagiellonian University launched a new AI program in 2024 and opened an advanced research center this year to collaborate with industry. Demand is so high that 176 candidates competed for just 20 spots in the inaugural course.
“Krakow is prepared for economic changes and has the resources to build an innovative economy based on high technologies,” Mazur said. “Krakow will not become Detroit. Krakow will remain Krakow.”
