Belgian tech industry sounds alarm over job losses
More than 5,000 jobs were cut in the Belgian technology industry in the first nine months of this year, according to industry association Agoria. The association is sounding the alarm, predicting that 12,000 tech jobs will be lost this year and next.
The number of jobs cut has reached its highest level in 12 years, Agoria reported on Tuesday. For the first time in almost five years, the Belgian tech industry is not creating any net new jobs. Nearly 6,000 jobs disappeared compared to a year before.
"With the exception of the Covid-19 crisis, this has not been seen in decades"
Major restructuring announcements in the manufacturing industry, especially in the automotive sector, explain the large losses. At Audi Brussels alone, 3,000 jobs are at risk. "And then there are all the small companies that don't make the media," said Bart Steukers, CEO of Agoria. "With the exception of the Covid-19 crisis, this has not been seen in decades," he said.
Pivotal moment
Agoria expects total job losses in the industry to reach 9,300 this year and believes 3,000 more jobs will be lost in 2025. A tentative recovery is expected in 2026. The sector's economic activity is down 3.4 per cent on last year and temporary unemployment has peaked.
"The cake is getting smaller and the Belgian slice is getting even smaller"
Belgium's manufacturing sector shrank by 8 per cent in the first half of this year compared with the same period last year. The picture is even bleaker at European level. Belgian technology exports within the EU have reached an all-time low of 4.4 per cent market share, said Agoria.
"The cake is getting smaller and the Belgian slice is getting even smaller. Only crumbs will be left in the future," Steukers said. "We are at a pivotal moment."
Explosive cocktail
The woes of the Belgian tech industry are the result of an explosive cocktail of high inflation, energy prices and wage costs, according to Agoria. The association is calling on the country's future federal government to urgently focus on competitiveness and cut red tape.
"The previous government focused entirely on purchasing power, the next one must focus fully on our industry," said Steukens. Politicians are waking up to the seriousness of the situation, he said, but they must now put theory into practice.
"At the European level, the Draghi report is ready with 170 recommendations to revive the European industry. Now it is up to the government of this country to implement them," he said.
Workers at the Audi Brussels plant in Forest in 2021. 3,000 jobs are at risk at the plant after Audi announced a restructuring in July this year © BELGA PHOTO ERIC LALMAND
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