Portugal tech sector sees surge in layoffs amid AI-driven cuts

Between January and March 2026, Portugal recorded 65 rounds of layoffs in the technology sector, with 34 of those (52%) affecting IT departments. Global giants such as Microsoft, Nokia, Dell, Oracle and Amazon were among the companies that reduced staff, reflecting a broader contraction linked to the increasing use of artificial intelligence (AI). Data from the Teamlyzer layoff tracker, covering the first quarter of 2026, indicate that the pace of cuts has crossed the Atlantic and intensified in the domestic market. Teamlyzer projects that 2026 could end with about 260 layoff rounds in Portugal, marking the fourth consecutive year with more than 200 rounds. Since 2022, the Portuguese tech market has accumulated over 800 layoff rounds, with companies citing AI adoption as justification for trimming especially newly hired, routine‑task roles.