Looking ahead to 2025, Portugal’s tech sector is set to be dynamic, with key trends emerging:
💰 Salaries
- Specialized Roles: Expect significant wage increases for professionals in Web 3.0, AI, automation, and cloud technologies.
- Overall Growth: Wage growth will likely be modest, just above the 2.1% inflation rate, except for highly specialized roles.
👨💻 Junior Talent
- Competitive Market: The junior tech market is becoming increasingly competitive, with a focus on qualifications from top universities.
- Portfolio Over Degrees: Practical experience and portfolio projects will stand out more than traditional diplomas.
🏢 Return to the Office
- Remote Work Decline: Remote work is losing momentum, with companies like Amazon and AWS ending remote policies in January 2025.
- Hybrid Work: Major players like Altice and NOS are encouraging a hybrid model but pushing for more office presence.
👥 Middle Management
- Challenges for Managers: Middle management is facing pressure as younger generations demand flatter hierarchies and AI automates administrative tasks.
- Corporate Trends: Companies like Google and Bayer are reducing middle management levels.
💼 Layoffs
- Stability with AI Impact: After a 70% increase in layoffs in 2024, 2025 may bring more stability, though AI’s impact on the job market remains uncertain.
- AI’s Role: AI is likely to replace or transform many jobs, as acknowledged by industry leaders like Sonae.
🤝 Mergers & Acquisitions (M&A)
- Declining M&A Activity: The Portuguese market saw a 46% drop in M&A activity, with few tech companies large enough to attract international investors.
🌍 Tech Hubs
- Portugal’s Appeal: Portugal remains attractive to tech companies due to its affordable talent, political stability, quality of life, and strong English proficiency.
- German Recession Impact: The potential relocation of German tech hubs to cheaper countries could benefit Portugal’s tech ecosystem.
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