Meta reiterates commitment to Ireland despite job losses as Michael McGrath concedes recession risk in 2023

Meta has committed its long-term future to Ireland, despite news that nearly 400 employees at the company in Ireland will be made redundant.

The news comes that around 11,000 Meta employees will be laid off worldwide as the company’s workforce is shed due to slowing growth and advertising revenues falling well short of forecasts for this year.

Meta has pledged to the Irish government that they remain committed to Ireland being their European headquarters despite today’s redundancies. The company directly employs 3,000 people and has approximately 6,000 contractors from other companies that are directly involved in its services.

“[Meta] have assured us as a government of their commitment to Ireland.

“We appreciate their long-term commitment to remain in Ireland in relation to their international headquarters and they will still employ a very large number of people in this country,” Michael McGrath, Secretary of State for Public Expenditure and Reform, said in News at One by RTÉ.

The minister said it was “a dark day for everyone who is being told they will lose their jobs”.

Mr McGrath said the Government and “all the agencies that work with us” would help laid-off meta-workers “as much as we can”.

Mr McGrath said many of the workers being made redundant “have skills that are scarce and really in demand” in various sectors of the Irish economy, “including a significant number of vacancies in other areas of technology”.

The minister said recent layoffs in the tech sector would have a “natural” impact on income tax receipts as they are mostly well-paid jobs, but added that it was a “global phenomenon” and that Ireland was a “well-diversified one”. Abroad “have direct investment” portfolio that is not overly dependent on technology companies.

“[Tech] is a sector that has had phenomenal growth during Covid and beyond and there was certainly an element of overreach and overrecruitment and now we are seeing a correction but I am so aware that we are talking about people and the jobs that are the people have, and the livelihoods they rely on to pay their rent, pay their mortgage and so on,” said the Minister, before adding that there were still vacancies in the technology sector in Ireland.

Secretary McGrath said the “big correction” in the tech sector will lead to job losses in the tech sector and will also affect income and corporate tax revenues “across the board”. He also acknowledged that there was a real risk of recession in Ireland next year.

“There is a risk [of a recession], but on budget day we presented our forecast for next year, which called for modest growth. If those projections were wrong, you wouldn’t have too far to go if the economy were broadly flat or even turning negative,” Secretary McGrath said.

https://www.independent.ie/business/technology/news/meta-reiterates-commitment-to-ireland-despite-job-losses-as-michael-mcgrath-admits-recession-risk-in-2023-42131386.html Meta reiterates commitment to Ireland despite job losses as Michael McGrath concedes recession risk in 2023

Fry Electronics Team

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