The number of planned redundancies in the Republic of Ireland has jumped 89% in the last six months to reach 7,767*, compared to 4,099 in the previous six months, says Littler the specialist employment law firm.
The number of employers that have notified the Department of Enterprise Trade and Employment, that they plan to make redundancies (of five employees or more)**, has increased 68% to 109 in the last six months, compared to 65 in the previous six months***.
The sharp rise in redundancies reflects the strain on businesses in Ireland as interest rates continue to rise, forcing employers to reduce headcount. It also reflects the exposure of Ireland to technology companies who, in particular, have come under pressure from the shareholders to deliver cost savings through redundancies.
Recruitment drives during the pandemic have left some tech companies overstaffed. This has led to some large employers, like Meta, undertaking several rounds of redundancies.
Niall Pelly, Partner at Littler, says the figures suggest employers, outside of the tech sector, are also having to take action to address difficulties created by the rise in interest rates.
Niall Pelly says: “With pressure on businesses mounting, large-scale redundancies are inevitable.”
“In the tech sector in particular, sharp drops in share prices in 2022 has forced employers to take action to prove to shareholders that they are serious about cost cutting and improving profitability.”
“Thankfully these redundancies are coming on the back of a long-term expansion in employment in Ireland.”
*Total number of planned redundancies by month: May 2022 – May 2023.
**Collective redundancies arise where, during any period of 30 consecutive days, the employees being made redundant are at least 5 employees where 21-49 are employed, 10 employees where 50-99 are employed, 10% of the employees where 100-299 are employed, or 30 employees where 300 or more are employed.
***May include employers who have undergone two or more waves of redundancies.
