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Economists Link Call Center Layoffs to Rise of Artificial Intelligence

Recent layoffs at Teleperformance (200 jobs) and Microsoft Portugal (68 jobs) may already reflect the growing impact of artificial intelligence (AI) on the labor market, particularly in the call center sector, according to economists interviewed by Lusa.

Economist João Cerejeira from the University of Minho pointed to several contributing factors - sluggish growth across Central Europe, especially in Germany, as well as companies seeking lower-cost markets and increased automation in customer service. He noted that “a large part of these services is beginning to be replaced by technology associated with artificial intelligence.”

Pedro Martins, professor at Nova School of Business and Economics and former Secretary of State, agreed that AI could profoundly reshape call centers, saying that “several studies already indicate that call centers can benefit greatly from AI - not only by complementing worker productivity but also through replacement.”

Despite the technological disruption, both economists remain optimistic about the overall Portuguese labor market, with unemployment still at historically low levels. They caution, however, that traditional sectors such as textiles and footwear could face greater strain.

Both experts underscore the need for stronger vocational training policies to help workers transition into emerging fields. “Portugal must modernize its employment and training policies,” Martins said, “so that people can return to work faster, with skills that match the market’s needs.”