While other tech markets grapple with layoffs and economic shifts, the Netherlands presents a different picture. This article explores the Dutch tech landscape in 2025, examining its strengths, challenges, and unique characteristics to help you decide if it's the right place for your tech career. This analysis is intended for tech professionals already based in the US, Canada, the UK, or the European Union.
Dutch Tech Market Dynamics
The Netherlands, with a population of 17.9 million, faces a projected worker shortage of 1.4 million by 2030. This unusual dynamic has shaped the Dutch tech market in several ways:
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Layoffs have been less prevalent than in other regions.
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Housing costs are a significant barrier to attracting talent.
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Salaries are slowly increasing while other European markets stagnate.
Growth and Investment
Dutch tech is particularly strong in deep tech fields like artificial intelligence, quantum computing, and semiconductors. Deep tech startups represent a significant portion of the Dutch ecosystem, with a high scale-up ratio compared to other European countries. Amsterdam's Science Park was selected as the site for a new EU quantum computer.
In 2024, Dutch tech companies secured €3.1 billion in VC funding, a 47% increase from 2023, bucking the trend of declining investment across Europe. As of 2025, the Netherlands is the fourth largest startup hub in Europe. However, the number of new startups declined by 23% in 2024, and Dutch investors are participating less in late-stage funding, leading startups to seek funding abroad.
Layoffs and Attrition
Mass layoffs are uncommon in the Netherlands due to strict labor laws and employee protection. Companies typically manage downturns by not renewing temporary contracts. Unlawful layoffs are rare because employees can sue companies, which can be costly. Consequently, companies often hire temporary contractors to mitigate risk.
Layoff Data Analysis
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2022: The Netherlands largely avoided mass layoffs. A notable case was Message Bird, which laid off 31% of its staff (approximately 250 employees).
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2023: The Dutch market remained relatively untouched by global standards. Less than 4% of software developers were laid off, compared to 13.2% in the rest of Europe. Startups experienced a 42% increase in attrition rates, both voluntary and involuntary, compared to a 10% increase across Europe. This was due to a decline in VC activity and macroeconomic factors. Hiring rates dropped by almost 50%, dealt with through hiring freezes and termination of contracts.
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2024-2025: The Dutch continued its trend of low layoff rates. Isolated cases occurred, such as Amsterdam-based Bird laying off 33% of its workforce (around 120 employees). The main employment challenge was difficulty in hiring and retaining skilled talent, with 56% of tech job openings considered hard to fill.
FANG layoffs in the Netherlands have been very limited due to robust labor protection laws and smaller local offices with fewer engineering roles. Overall, attrition and hiring freezes have had a greater impact than layoffs.
Characteristics of the Dutch Tech Market
Prominent Dutch Tech Companies
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ASML: World's leading supplier of photolithography machines for semiconductor manufacturing.
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Booking.com: One of the world's largest online travel platforms.
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Adyen: A global payment processing company.
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Mollie: A fast-growing payment service provider in Europe.
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Picnic: An online grocery delivery service with an innovative logistics model.
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Fastned: Operates a rapidly growing network of fast-charging stations for electric vehicles.
Outsourcing Trends
Nearshoring to Eastern Europe is increasing for IT and customer service roles due to proximity, cultural similarities, and time zone alignment. Traditional offshoring to South Asia is expected to decline due to data security and regulatory reasons. The main motivation for outsourcing is cost savings and addressing local talent shortages.
Talent and Education
Education and Skills
Digital skills are embedded in the national curriculum from secondary school onward. The Netherlands has research universities and universities of applied sciences with strong tech and engineering programs.
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Delft University of Technology (TU Delft): Ranked number one globally for engineering and technology.
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Eindhoven University of Technology (TU Eindhoven): Ranked number 13 globally for engineering and technology and awarded digital university of the year in 2024.
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University of Twente and University of Amsterdam: Excel in AI, data science, and computational science.
Skill Gaps
There is a chronic shortage of qualified tech professionals in the Netherlands. The labor market scarcity is projected to triple by 2030, potentially resulting in a shortage of 1.4 million workers. There were 26 vacancies for every IT worker in the Netherlands in 2021. Talent shortages are particularly acute in areas like full-stack development, DevOps, data engineering, data analytics, and product engineering, especially in fintech, food tech, and AI.
Even with a growing tech workforce, positions remain difficult to fill. Holland is considered one of the hardest places to find qualified talent. The number of postings requiring only English has dropped, and the severe housing shortage in tech hubs makes it harder for foreign professionals to relocate.
Tech Scene and Culture
The Dutch tech culture is collaborative and flat, emphasizing work-life balance. It is diverse and offers a good mix of professional and social life. Networking is very active and a substantial percentage of jobs are filled through connections. Amsterdam hosts multiple conferences and industry events such as Go to Amsterdam, Texo Amsterdam, React Summit, JS World, and Level Up.
Cost of Living
The cost of living in the Netherlands has risen sharply, especially housing. Rent in cities like Amsterdam has skyrocketed. House prices have hit new records, driven by a persistent housing shortage. Other living costs, including food, healthcare, and transport, have also increased. The main challenge for tech workers is finding affordable housing in major cities.
Conclusion: Is the Dutch Tech Market Right for You?
The Dutch tech market in 2025 is characterized by resilience and structural challenges. It has secured significant venture capital and has a strong deep tech sector.
The Netherlands might be a good idea if:
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You work in high-demand fields like AI, cloud computing, data science, or deep tech.
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You value a flat, collaborative work culture with strong work-life balance.
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You are attracted by a welcoming, diverse community with frequent tech meetups.
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You want strong employee benefits and relocation support.
The Netherlands might not be a good idea if:
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You are highly sensitive to the cost of living.
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You prefer lower taxation.
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You are seeking rapid US-style startup scaling.
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You have founder ambitions and need easy early-stage startup funding.
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You need extremely fast career progression or salary growth.
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