Leo Varadkar to be told by IDA about risks to Irish tech jobs following Twitter decision – The Irish Times

Tánaiste Leo Varadkar is to be told next week about the risk that Irish jobs will be at risk from a “tech reset” – or economic downturn for big tech companies – in the multinational sector.

It comes after job losses were reported last week at the Dublin offices of Twitter, social networking site and payments company Stripe, co-founded by Irish brothers John and Patrick Collison.

Incoming investment agency IDA Ireland, as well as potentially Enterprise Ireland, are to brief Mr Varadkar – possibly as early as Monday – on the potential impact of changes in the tech sector and how this could affect direct investment Irish foreigners.

An IDA spokesperson said he will “meet with the Tánaiste to discuss the latest developments in the technology sector.”

The meeting is expected to address the risk of an impact on the workforce of multinational tech companies’ Irish operations, a source said. A second well-placed source said the intention was to “take stock of where we are with job losses and potential job losses in the tech sector.”

A third warned there had been a ‘doomsday rush’ following last week’s news, and said the meeting would also assess the strengths of the economy and jobs market.

But there are concerns both about the nature of the job losses in the two companies and what they may represent.

There is uncertainty about the precise scale of the job losses, and the Enterprise Department said on Saturday that neither company had informed it of any decision to start laying off Irish staff. Irish employment law requires a company wishing to carry out a collective redundancy to inform the Minister for Employment – ​​Mr Varadkar – 30 days before any redundancy. High-level sources reserved judgment on Sunday on whether labor rights violations had taken place.

In a statement, Stripe said it was in a “consultation process and will write to the Minister in accordance with its legal requirements.” The company said it will lay off about 14% of its global workforce, but has not yet provided a breakdown for specific offices or regions.

Collective dismissal processes also oblige companies to consult with elected staff representatives with the aim of mitigating the consequences.

Twitter did not respond to a request for comment on the scope of the layoffs, when employees were officially notified, when their layoffs will take effect, or why the department was not notified. A significant proportion of the company’s communications staff would have been affected by the global job losses.

A Twitter employee told the Irish Times that there is a “real level of trauma amongst the workforce by the way this is handled”. An employee said the situation was a “complete s**tshow” and sources said it was unclear even to those within the company who still had their jobs at the social media giant, who was acquired last month by Elon Musk, the South African-born billionaire.

Twitter staff woke up Friday morning to find that their offices had been closed and access to its IT systems had been cut “to protect the security of our confidential information and user data”.

More than half of its 500 workers in Dublin were expected to be made redundant.

The company sent communications to the personal emails of staff threatened with dismissal. The notice said that ‘does not mean that we have made any final decisions regarding this process or your role’, adding that they would have the opportunity to ‘express their views’ through ’employee representatives’ who would be elected. by staff shortly. .

Communication to Dublin staff at risk of redundancy, seen by The Irish Times, said they would receive a lawful redundancy, plus an “ex-gratia payment of one month’s extra pay”, plus two weeks pay per year of service completed.

In Ireland, statutory dismissal is equivalent to two weeks pay per year of service plus an additional week’s pay, for those who have worked for two years or more.

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