IDA sees weaker flow of investment projects but is still upbeat about tech jobs outlook

Despite mass layoffs by several online giants, Mary Buckley says the IDA's client companies are optimistic about their prospects

Mon, 21 Nov, 2022 - 20:50

Eamon Quinn

The IDA has recorded a slowdown in the number of international investment projects flowing into Ireland as the global inflation crisis bites, but is confident the multinationals that provide 275,400 Irish jobs will weather the storm.

Interim boss Mary Buckley told the Oireachtas enterprise committee the IDA expects the number of projects in the first half of next year to be down from the first six months this year, but that the outlook remains positive.

“Notwithstanding the current challenges and uncertainty in the global environment, IDA client companies are generally optimistic on the prospects for their businesses, and we have sight of a healthy pipeline for the first half of 2023, albeit slightly weaker than in H1 2022,” said Ms Buckley.

Twitter is one of several online giants with a significant presence in Ireland that have announced global job cuts. File picture

The remarks come after a slew of US-based tech firms, including Twitter and Stripe, announced major job losses across the world in recent weeks that will also affect their major facilities in Ireland.

The worldwide jobs retreat by US tech firms is the first for a decade as the inflation crisis threatens to push major economies into recession. The first significant rises in global interest rates this decade have also undermined the valuations of tech firms because many carry large amounts of corporate debt.

However, Ms Buckley said some tech firms, after expanding and hiring at a fast pace during the pandemic, are now reining in costs. She said:

The companies that have announced job losses will continue to operate in Ireland, many of them at a considerable scale.

High-profile US tech firms announcing global job losses have also included Amazon, which has laid off some employees in its devices group; Meta Platforms, owner of Facebook, which said it plans to cut 13% of its workforce or more than 11,000 employees; and Stripe, which is cutting its global headcount by about 14%.

HP, the computing devices maker, has also said it expects to cut up to 6,000 jobs across the world by the end of its financial year in 2025.

However, US corporate job losses have spread beyond tech. Citigroup said the bank eliminated dozens of jobs in its investment banking division; Morgan Stanley is expected to start a fresh round of layoffs globally in the coming weeks; and movie subsidiary Warner Bros Discovery is planning to cut a number of jobs in distribution and marketing that will reduce headcount by 5% to 10%.