Tech giant Stripe pledges to long-term job growth in Ireland despite layoffs

The job cuts at Stripe may not hit Ireland as hard as other locations, the company has indicated, saying “our commitment to our Irish headquarters remains as strong as ever”.

The digital payments company, which announced last week that it was laying off 14 percent of its 7,000 employees worldwide, has not yet revealed a geographical breakdown of the job cuts.

However, reports over the weekend indicated that Stripe had yet to notify the corporate ministry of layoff plans, suggesting the company could focus on cutting jobs elsewhere before focusing on the 300 jobs here.

Following notification, Ireland’s collective redundancy consultation process requires Stripe to consult with elected workers’ representatives to mitigate adverse consequences. The process usually takes at least 30 days to complete.

Job cuts in Ireland are a particularly troubling proposition for Stripe, which raised €42 million in taxpayers’ money in March 2021 when the Irish Strategic Investment Fund (ISIF) participated in a funding round that valued the company at a staggering €80 billion.

The company became Silicon Valley’s most valuable private technology company of all time following this round of funding, promising potentially high returns for the state wealth fund.

As part of the agreement, Stripe pledged to hire an additional 1,000 people at its Irish operations over five years so the investment would meet ISIF’s “Double Bottom Line” mandate to maximize financial returns and create jobs domestically.

That goal seems a long way off given Friday’s announcement in which Limerick brothers John and Patrick Collison, who founded the company a decade ago, admitted they overestimated the staffing needs of the fast-growing tech company.

“We, the founders, made this decision,” they wrote in a company-wide memo. “We have over-hired for the world we operate in – and we are pained not to be able to deliver the experience we hoped for from stakeholders at Stripe.”

Stripe has fallen victim to a broader tech industry crisis, with several major companies — including Twitter, Amazon, and Facebook — announcing layoffs or hiring freezes in recent weeks.

The company’s current troubles were hinted at over the summer, however, when it slashed its internal valuation by 28 percent just a year after hiring a law firm as part of a plan to seek an IPO.

https://www.independent.ie/business/irish/tech-giant-stripe-commits-to-long-term-job-growth-in-ireland-despite-layoffs-42123402.html Tech giant Stripe pledges to long-term job growth in Ireland despite layoffs

Fry Electronics Team

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