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First we should abolish the 5-7 year PhD program and make it three years. Second universities should use this crisis as an opportunity to rethink Their approach to entrepreneurism. Third this actually creates opportunities for students to become professors. In most fields good luck!

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Reducing the length of PhD programs (in the U.S. -- PhDs in Europe tend to be shorter) would have the side-effect of having even more PhD grads (of lower quality) that can't find a job.

Getting rid of tenure would facilitate mobility and increase accountability.

So keep them out of the workforce longer?

PhD programmes are 3 years in Europe because the education beforehand is much more focused. You've pretty much chosen what you want to do at at 16 and from 18 years old onwards you only study one subject. To be admitted to a PhD programme usually requires either a masters degree or a lot of reserach experience. Then the actual PhD programmes themselves are just research, no classes or teaching.

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