TechnologyAnalysis

Google’s Irish lay-offs another sign that nothing in tech lasts forever

Analysis: Technology giant the latest global operator to implement cuts in Ireland

Google’s confirmation that it will cut 240 jobs from its workforce in the Republic draws a line under at least some of the uncertainty that has weighed on workers there in recent weeks.

After the tech giant announced in January that it would cut 6 per cent of its global workforce, US staff were informed swiftly – a little too swiftly, in some cases – about their fate. However, Irish employment law meant that the company had to satisfy certain requirements before it could say how many people – and which people – would be leaving the company.

Now the Minister for Trade, Enterprise and Employment has been informed, so Google has revealed the number of cuts, but the “who” remains to be seen. From Thursday, Google will start consultations with staff, marking the next phase of the job cuts. The uncertainty for staff is thus set to continue for a little while longer at least.

The final figure is lower than some had expected. Google is not packing up and leaving Ireland, not after investing billions in its operations here. But the business is being trimmed, and no part of it has been left untouched. While sales and support services are losing staff – 85 and 75 respectively – the company has identified 80 tech and engineering roles that are also set to be eliminated.

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To put this into context, the Irish arm of Google employs 5,500 directly, and up to 9,000 people when temporary and contract workers are taken into account. Against that figure, the 240 jobs being lost – 4.3 per cent – doesn’t seem like a lot. But context matters little to the people who will be faced with finding a new job in the coming weeks, in a market where hundreds of tech companies have shed jobs in recent weeks.

Microsoft recently confirmed it would cut 120 jobs in the State, while Intel has shed 130 from its Irish workforce. Twitter lost half its Irish workforce when Elon Musk took over, while Meta’s global cut of 11,000 staff translated into roughly 340 jobs lost here. Stripe has shed 1,000 staff globally, around 14 per cent of its workforce, and home-grown unicorns Intercom and Wayflyer have also made cuts. Salesforce, Zendesk, IBM, Ebay and Amazon have all announced job cuts too, although the latter’s 18,000 reduction is expected to have a minimal effect on the Irish staff. The list goes on and on, and it paints a gloomy picture.

The tech sector had been largely insulated from losses during the Covid-19 pandemic. But the events of recent weeks have proven that nothing lasts forever, though as many of those who have come through previous downturns and lived to tell the tale will attest, that includes the bad times.

The cuts have also highlighted the value of being protected by unions. The Financial Services Union, which represents some Google workers, has already called on the company to avoid compulsory redundancies and work on voluntary packages instead. The union was quick to highlight the contribution that Google workers have made to the company and its success, something it hopes will be reflected in its dealings with staff in the coming days.