A wave of restructuring is hitting the technology sector hard: more than 5,000 jobs were lost in the first nine months of 2024.
The new business monitor from Agoria, the Belgian technology federation, shows that the technology sector is currently under severe pressure. In the first nine months of 2024, more than 5,000 jobs were lost due to restructuring, which is the highest number in 12 years. This job loss affects both the technology manufacturing industry and the IT sector, which is normally a growing sector.
Highest job loss in more than a decade
According to Bart Steukers, CEO of Agoria, eight out of 10 indicators in the business monitor are in the red, indicating an alarming situation. He stresses that the industry is at a pivotal moment and that policy must act quickly to adopt an “Industry First” approach. Steukers points to the need to stimulate investment, reduce the regulatory burden and strengthen the competitiveness of companies.
Indicators measuring activity and employment in the sector show that the technology manufacturing industry experienced a sharp decline in the first half of 2024, with production levels alarmingly low. Belgian technology companies have been operating at less than 80% of capacity for almost two years, further slowing investment. The export performance of Belgian technology in Europe has also fallen to an all-time low of 4.4%.
On the employment front, the situation is also worrisome, with nearly 6,000 jobs lost in the past year. However, demand for new workers remains high, with nearly 15,000 job openings, although companies are struggling to find technical profiles.
According to Agoria, the main challenges facing the sector include high energy costs, the labor cost handicap, and excessive regulatory pressure. Steukers calls for a reduction in the regulatory burden, more investment in innovation and strengthening the competitiveness of Belgian technology companies to face this crisis.
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