Analysis: the job losses and retrenchment in the Irish tech sector which we are currently seeing is the other side of the State's FDI successIreland is a major international success story for attracting foreign direct investment . According to the Department of Enterprise, Trade and Employment, it is estimated that 20% of jobs in Ireland can be attributed directly or indirectly to FDI.
FDI in Ireland has also been unusually resilient by international standards with many subsidiary operations evolving over the years to retain their relevance to their parent organisation. For example, the American Chamber of Commerce reports that one third of US multinationals operating in Ireland have been here for more than 20 years.
From a broader, macro perspective, these lay-offs can be regarded as part of the normal life cycle of FDI. Multinational corporations undertake foreign investments to create value for their organisation, such as capturing opportunities for growth in international markets. The accelerated shift to online working and ecommerce prompted by the pandemic led to phenomenal growth in the tech sector.
From RTÉ Radio 1's Morning Ireland, Dr Jean Cushen from Maynooth University on what's behind the recent job losses in the technology sector in Ireland