A wave of restructuring is hitting the technology sector particularly hard, with more than 5,000 jobs lost in the first nine months of 2024.

The new economic monitor from Agoria, the Belgian technology association, shows that the technology sector is currently under severe pressure. More than 5,000 jobs were lost due to restructuring in the first nine months of 2024, the highest number in 12 years. This loss of employment affects both the technological manufacturing industry and the IT sector, which is normally a growth sector.

Highest job loss in more than a decade

According to Bart Steukers, CEO of Agoria, eight out of ten indicators in the economic monitor are red, indicating an alarming situation. He emphasizes that the industry is at a crucial moment and that politicians must intervene quickly to pursue an “industry first” approach. Steukers points to the need to boost investment, reduce regulatory pressure and strengthen companies’ competitiveness.

Indicators measuring activity and employment in the sector show that the technological manufacturing industry experienced a sharp decline in the first half of 2024 and production levels were worryingly low. Belgian tech companies have been operating at less than 80% of capacity for almost two years, further delaying investment. The export performance of Belgian technology in Europe has also fallen to a historic low of 4.4%.

The situation is also worrying in terms of employment: almost 6,000 jobs were lost last year. However, demand for new workers remains high: almost 15,000 positions are open, although companies are struggling to find technical profiles.

According to Agoria, the key challenges facing the sector include high energy costs, labor cost disadvantages 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 in order to overcome this crisis.