Ireland is over the worst of tech cuts — Simon Coveney
Growth Simon 15 20 For Are Tech Back ' Trade 'most Somewhere Last Year Between The Minister Coveney Cent They Announced Enterprise, Taking And And Panies Per Of Employment
Ireland is "over the worst" of the announcements in relation to job cuts at big multi-national tech firms with bases in this country according to Minister for Enterprise, Trade and Employment Simon Coveney.
Speaking in Cork following his recent visit to the west coast of the United States, where he had a series of meetings with a range of companies, Mr Coveney said that large tech companies are keen to not only stay in this country but to grow and expand here.
He indicated that the overall message from the technology sector in the US was an optimistic one in spite of large companies such as Google and Twitter making cuts to their staff in Ireland in recent months.
"I certainly think we are over the worst in terms of announcements. Of course, some of the global announcements have yet to be translated into announcements here in Ireland. But we may see a small number of further tech companies making announcements but certainly, I think we have heard the majority of the announcements that we are going to hear," he said.
"Some of them of course have announced reductions in their global workforce and that has impacted Ireland. Although it is true to say that the percentage cuts globally that companies have announced is normally more than the percentage cut here in Ireland."
Minister Coveney said that in essence what is happening is that most tech companies are taking back somewhere between 15 and 20 per cent of the growth they announced last year because it happened too quickly.
"This is a correction in the tech sector but it is certainly not a crisis. And I can assure you when the tech sector starts to grow again it will probably be growing out of Ireland rather than anywhere else.
I got the sense from them that they have made the correction as they would put it that they needed to make to recognise the fact that growth and additional job numbers in most of these companies happened too quickly over the last number of years.
Minister Coveney stressed that the biggest tech company, Apple, has not made any cuts to its staffing levels in Ireland and is instead planning to increase its workforce in this company.
"The largest company in the world (Apple) that employs over 6,500 people in Cork are planning to add an extra 1,300 over the next few years and they are building out their (Cork) campus to do that. So it is not all bad news."
Meanwhile, when asked if the housing crisis was a barrier in terms of multinationals choosing to locate in Ireland the Minister acknowledged that there are always "ongoing challenges" in relation to keeping this country competitive and attractive for overseas firms.
"Last year we managed to build almost 30,000 new homes. This year we need to do more because we need to make sure that whether you are a young person here looking to leave living with your family to have your own home, whether you are renting, or whether you are buying we want to make sure that you can find a sustainable housing solution.
"Ireland is a good place to do business. But there are always ongoing challenges that the state needs to respond to keep Ireland competitive and a place where companies want to invest and grow and bring their top people."
"Housing is one of those issues but it is only one of them."