Collective dismissals in Portugal increased by approximately 13 percent in the first seven months of this year, totaling 375 processes reported by companies to the Directorate-General for Employment and Labor Relations. This is the highest number recorded since 2020, during the height of the pandemic, when 420 processes had been flagged in the same period. The Lisbon and Vale do Tejo region concentrated the majority of actions, with 221 processes, followed by the North with 104 and the Center with 36. Small businesses led the occurrences, with 174 cases, followed by micro-enterprises with 105 and medium-sized with 68, while large companies represented only 28 processes.
Despite the increase in the number of procedures, the total number of workers covered decreased. By the end of July, 4,250 people were covered by collective dismissals, representing a year-on-year decline of 9.3 percent compared to the 4,688 flagged in the previous year. Of these, 4,055 actually saw the termination of contract materialize, a drop of 11.4 percent in effective dismissals. The historical evolution shows progressive growth over recent years, rising from 230 processes in 2021 to the current 375.
In the month of July alone, 624 professionals were dismissed, fewer than the 781 dismissed in July 2025 and the 661 in June. Lisbon and Vale do Tejo was once again the epicenter of the cuts, accounting for 63 percent of total contracts terminated, corresponding to 391 people. Manufacturing industries recorded the largest share of eliminated jobs. As for the grounds invoked by companies, structural workforce reduction predominated in 78 percent of cases, while complete business closure represented 14 percent and partial section closure eight percent.
