Paschal Donohoe brands tech firms' handling of job losses as 'appalling'

Minister for Finance Paschal Donohoe said the IDA had been in contact with the tech companies involved to remind them of their specific obligations under Irish employment legislation. Picture: Leah Farrell / RollingNews.ie

Ireland remains an attractive place for large companies to do business despite recent layoffs in the tech sector, the IDA has said.

Responding to job cuts from Twitter, Stripe and Meta, the agency said investors' commitment to Ireland remains strong and new investment in the tech sector continues to be won.

The IDA said it is monitoring the situation in the global technology sector as well as matters in Ireland.

It is important to note that the companies that have announced job losses in recent days will still operate in Ireland and remain important companies in the Irish ecosystem, said Mark Buckley, IDA Ireland's interim CEO.

"IDA’s focus is on the continued partnership with these companies to continue to grow their presence in Ireland and deepen their impact on the Irish economy," said Ms Buckley.

The IDA is identifying new areas of opportunity for Ireland and exploring emerging areas of opportunities, she said. These opportunities range from digital technologies and microelectronics to advanced therapy medicinal products and developments in the renewable energy sector.

While there are many factors that make Ireland a strong choice for investors and companies, the IDA warned that competition remains fierce and work must be done to remain comepetitive amid a volatile environment.

Responding to job cuts from Twitter, Stripe and Meta, the agency said investors' commitment to Ireland remains strong and new investment in the tech sector continues to be won. Picture: Leah Farrell / RollingNews.ie

"We must remain competitive while working to address immediate issues related to the carrying capacity of the economy including housing, energy, water, infrastructure and planning as well as policies supporting talent and skills development," said Ms Buckley.

Following the announcement of layoffs in Ireland, the IDA has been in close contact with the Tánaiste and officials in the Department of Enterprise, Trade and Employment.

The IDA has also been in contact with the tech companies involved to remind them of their specific obligations under Irish employment legislation.

Meanwhile, Minister for Finance Paschal Donohoe has said that the behaviour of some tech companies in announcing job losses recently fell “far short” of what would be expected under Irish employment laws.

It comes as workers at Twitter who survived last week’s mass lay-offs are facing harsher work conditions and growing uncertainty about their ability to keep Twitter running safely, while staff at Meta Ireland have been requested not to discuss the almost 400 job losses in Ireland among themselves.

Mr O’Donohoe told RTÉ radio’s Today with Claire Byrne show that the treatment of some tech staff had been “appalling”. The situation should have been handled with compassion and clarity, he said.

The IDA had been in contact with the tech companies involved to remind them of their specific obligations under Irish employment legislation, he added.

Paschal Donohoe has said that the behaviour of some tech companies in announcing job losses recently fell “far short” of what would be expected under Irish employment laws. Picture: Brian Lawless

Mr Donohoe said the job losses were now an opportunity for some of the people involved to create their own companies. “I am blown away by tech entrepreneurship in this country”.

Despite the job losses announced recently, Mr Donohoe was confident that Ireland would continue to have a strong tech sector. The changes in the industry were global, not just specific to Ireland. Enterprise Ireland’s high-performance start-up unit was “one of the best in the world”.

The country had prepared for a lower level of growth in the economy next year with an anticipated growth of between 1% and 1.5%, which was lower than in recent years, but the country continued to have a consistent high level of employment.

He outlined that the Government had prepared for any developing vulnerabilities which was why they had put money into the Rainy Day Fund. While there was not a recession at present, he acknowledged that it was tough for families and businesses with rising prices.

The temporary business energy support scheme will commence shortly which will last until February and cover energy bills — up to 40% of bills that increase by more than 50% — from September 1, he said.

However, the minister warned that he could not cover all of the costs without creating other risks for the country. It was about getting the balance right as had been done during the pandemic.

Mr Donohoe said: “We want to be confident that what we launch, we can afford”.