Amidst Big Tech Job Crunch and Argos Departure, Ireland Forecast GDP Growth to 2024
Like many other countries, Ireland is feeling the pinch of Big Tech needing to reel back. The workforces are taking the brunt of this after a recalculation of projections.
In Ireland alone, hundreds of jobs could be lost. Amazon has already axed 18,000 people in its latest round of layoffs globally.
On January 20, Google cut another 12,000 jobs to react to rising inflation, and the markets brace for a downturn.
Being a European hub for many of the globe’s largest tech companies, Ireland braces for the Big Tech crunch on employment.
To add to the news, Argos has declared that it will be leaving the country. Despite these headlines, the country is still attracting major businesses.
On top of this, GDP growth is still forecasted going forward.
Cuts across Big Tech continue to make headlines
As integral as it has become to international tech businesses getting a foothold in the European Union and the United Kingdom, Ireland won’t be immune to the crunch. It was reported on January 18 that Amazon would likely be cutting a “relatively modest” number of jobs.
The company has several software and network engineers in Ireland as well as Dublin’s warehouse workers. There are currently 5,000 Amazon employees working in Ireland.
At Silicon Docks, Google remains a major presence. Its parent company, Alphabet, takes up multiple office buildings and employs some 7,000 people.
Meta, Twitter, Intel, and Stripe have also disclosed details of intended reductions to deal with current and forecast market conditions. Along with these, a company that’s been operating in Ireland since 1996 is set to leave in its entirety.
Employing 600 people across Ireland, Argos has laid out its plans to depart the Irish market. There are a few reasons for this.
The main reason is that Argos can’t perform the same merger with Sainsbury’s in Ireland because the supermarket doesn’t have a presence in Ireland.
This has greatly helped Argos to survive in the UK. So, it seems that the costs of not being able to do something similar in Ireland outweigh the gains of continuing as it has for nearly 30 years.
Ireland’s GDP growth is expected to remain resilient
Just across the Irish Sea, the UK’s economy is already seen to be contracting. In Ireland, year-on-year GDP growth is expected to continue. GDP growth was recorded at 13.6 and 7.9 percent year-on-year in 2021 and 2022.
Looking to 2023 and 2024, smaller growth is forecast at rates of 3.2 percent and 3.1 percent, respectively. It’s a decrease in the rate of growth, but growth nonetheless.
Helping this will be the sheer volume of business both wanting to come to Ireland and those already finding success. A prime example of this is the Irish casino that offers slots, table games and live gameshows.
Its platform is specifically tailored to the Irish market, offering up to €600 in welcome bonus to new players as well as the latest in online casino gaming technology.
Insurance titan Arthur J. Gallagher has also found tremendous success in Ireland. Most recently acquiring First Ireland Risk Management, they now have twice the amount of business in the country.
Then, there’s the continued success of the Local Enterprise Office. Specializing in helping businesses set up in Ireland or start-ups on the Emerald Isle, the LEO created over 7,800 jobs in 2022.
The job cuts may be making the headlines, but Ireland remains resilient, with people still wanting to do business in the country.
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