Unbabel has concluded a collective dismissal process in Portugal as part of a broader global restructuring that will result in the departure of 66 employees, approximately 25% of its workforce.
In Portugal, 35 employees were initially affected, with 12 reaching an agreement with the company last month. The remaining 20 workers, who had appealed to the Directorate-General for Employment and Labour Relations (DGERT), have now reached a settlement after three meetings with Unbabel’s management. The final agreement includes improved compensation—30 days per year of service for recent employees and 35 days for long-serving staff—along with access to unemployment benefits.
CEO Vasco Pedro cited the rapid evolution of AI-powered translation as the main driver behind the restructuring, positioning Unbabel for future investments in R&D and growth. The company, founded in 2013, operates in Portugal, the U.S., the U.K., Romania, the Philippines, Germany, Bulgaria, and Israel.
This marks Unbabel’s second major restructuring in under five years. In 2020, the company had laid off 35% of its 250 employees due to the impact of Covid-19, only to expand again in 2021. Since then, Unbabel has received European support through Portugal 2020 and the Recovery and Resilience Plan (RRP).
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