Amazon is yet to notify the government of how many of its Irish staff will be affected after the tech giant announced 18,000 layoffs.
Large employers with more than 300 staff in Ireland intending to make over 30 layoffs must submit a collective redundancy notification to the Minister for Enterprise, Trade and Employment under Section 12 of the Protection of Employment Act.
It is believed that Amazon is still working through the detail of the layoffs, and it remains unclear how many of the company's 5,000 permanent workers in Ireland will lose their jobs.
If the layoffs are fewer than 30, the company would not need to notify government. Amazon said on Thursday that it would cut around 1.1% of its global workforce due to "the uncertain economy" and overhiring during the pandemic.
The firm had in November announced its intention to cut jobs, but the 18,000 figure is significantly more than speculated at the time.
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CEO Andy Jassy said the layoffs would predominantly be in the group's devices, people experience and technology solutions divisions as well as in Amazon stores.
In a memo to staff, Jassy added that "impacted employees" and employee representative bodies in Europe would be notified of who would be affected, starting on 18 January, a week next Wednesday.
Commenting on the announcement, Minister for Enterprise, Trade and Employment Simon Coveney said his Department had been speaking directly to Amazon and would stay in close contact with the firm and IDA Ireland, the state agency for foreign direct investment.
"We'll do everything we can to make sure that the conditions here in Ireland are as competitive as they possibly can be to make sure that companies are announcing new jobs as opposed to job losses," he continued.
"But we are seeing change in the tech sector internationally and Ireland needs to adapt to that. Certainly we hope that 2023, like 2022, will see many more jobs being announced than job losses and that will give people who may be impacted by job losses choice in terms of where else they would like to work.
"It’s important to remember that last year we saw an extra 10,000 people working in the tech sector," he added, in reference to the tech sector net adding jobs in 2022 despite high-profile job cuts at Facebook, Stripe, Twitter and other multinationals.
A spokesperson for IDA Ireland said on Thursday that the agency is in regular contact with Amazon in Ireland and the US and will be on an ongoing basis.
Amazon established its first Irish office in September 2004, opened a customer service centre in Cork in April 2006, and launched the first Amazon Web Services (AWS) infrastructure outside the US in Ireland in November 2007.
AWS, its web-hosting business, alone supports 8,700 jobs directly and indirectly in Ireland, including 3,100 direct hires, 3,900 contractors and sub-suppliers, and 1,700 from income generated by AWS investments.
Amazon is set to open a 630,000 sq ft fulfilment centre at Baldonnell Business Park employing 500 staff in the spring.
Jassy said management was "deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted.
"We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support."
As of December 2021, Amazon employed some 1.6m people globally. If the level of redundancies globally is maintained in Ireland, approximately 56 Irish jobs would be cut.
Amazon recorded net income of $33.4bn or $64.81 per share from net sales of $469.8bn in 2021. In its third quarter results, the company forecast fourth-quarter sales of $140-148bn, which would bring revenues for the year to above $500bn.
However, the group reported losses totalling $5.8bn in the first half of 2022 after marking down its investment in electric van maker Rivian Automotive, which has seen its losses mount to $1.7bn due to inflation in the price of materials and expansion costs.
(Pic: AP Photo/Steven Senne, File)
