Tech firms accused of showing ‘contempt’ for Irish workers amid AI-driven job cuts

Ivana Bacik warned thousands of tech workers face uncertainty as companies announce major redundancies across the sector

Labour leader Ivana Bacik criticised the practices of major tech firms, claiming companies were engaging in “AI-washing” by using artificial intelligence as an excuse to cut jobs. File picture: PA

Large tech firms are showing “contempt” for Ireland’s industrial relations mechanisms as they engage in “ruthless cost cutting”, the Dáil has heard.

Labour leader Ivana Bacik criticised the practices of major tech firms, claiming companies were engaging in “AI-washing” by using artificial intelligence as an excuse to cut jobs.

“Multibillion euro corporations, led by Trumpian cheerleaders in Silicon Valley, are using AI as cover for years of over hiring and for ruthless cost cutting,” Ms Bacik said.

Over the past year, the number of jobs in the tech sector has fallen by more than 20,000, with cuts announced by major employers including Microsoft, Amazon, and, most recently, Meta.

Ms Bacik said the job losses were causing “huge stress and anxiety” for workers receiving redundancy notices.

“How are these tech oligarchs dressing this up? As modernisation. Flattening teams, awful language when they’re talking about people’s livelihoods and people’s lives,” Ms Bacik said.

“Flattening companies really means throwing staff to the wolves to satisfy shareholders and inflate share prices.”

“These companies are showing contempt for the industrial relations mechanism of the State,” Ms Bacik said.

Ms Bacik cited the case of Covalen, where 700 staff are expected to be made redundant. The company provides outsourced content moderation services to Meta.

She argued that companies can make such cuts “with impunity” because Ireland’s labour laws are too weak.

A spokesperson for Covalen said: “Covalen continues to proactively consult with and support the affected teams through this transition. We also continue to follow the required processes in line with our obligations.”

Ms Bacik said tech companies are aware of Ireland’s heavy reliance on a small number of multinational employers.

“They know your Government is frightened of them, afraid they’ll pull investment, afraid they’ll move jobs elsewhere. We are in a permanent game of chicken, and the biggest losers are the people now fearing for their futures,” Ms Bacik said.

The Labour leader said Ireland needed to further develop indigenous enterprises and support more start-ups.

In response, Taoiseach Micheál Martin said he expected AI to “change the world of work” and that preparation was needed in advance.

Mr Martin said not all job cuts were necessarily driven by AI, adding that companies around the world were making broader investment decisions that affected staffing levels in tech firms globally.

“We have to prepare for that,” Mr Martin said.

He added that Ireland still has “strong labour protection laws”.