The technology sector globally has been hit with repeated rounds of job cuts in recent months, as firms who overhired during the pandemic, introduce efficiencies.

Google, Meta, Microsoft, Twitter, Stripe have been among the tech firms to announce job losses in Ireland, estimated by the Central Bank earlier this month to be around 2,300.

This figure does not include job cuts announced in the past week by Amazon and Indeed, or jobs cuts outside of the tech sector announced in recent days by Accenture and Cartamundi.

Losing a job can be a traumatic experience, but it is important to know that there is information and support available.

And despite recent uncertainty across the technology sector, the latest Jobs Index from IrishJobs.ie shows that the IT sector was the fourth largest generator of job vacancies in Q4 2022, accounting for 7% of all vacancies in that quarter.

“So, to those facing into the job search journey what I’d say first and foremost is that there is still a reason to be positive and take the time to search for those jobs that are still out there,” said Sam McIlveen, Managing Director of StepStone Ireland who has responsibility for hiring platforms including IrishJobs and Jobs.ie.

Employer obligations

The employer has to ensure all employees get their legal entitlements.

“Where a number of employees are being let go in a 30-day period, there may be a collective redundancy,” said Mary Connaughton, Director of CIPD Ireland which represents HR professionals. “This is related to the overall number of employees, and this would apply, for example, if a company employs more than 100 employees and 10% or more are to be made redundant.

“Then a company has to give written notice of the proposed redundancies to the Minister for Enterprise, Trade and Employment, provide details such as the method of selecting employees to the employees’ representatives and thirdly consult with the employees’ representatives on the proposed redundancies to try to reach an agreement on the way forward.”

Your employer should provide you with a P45 which will allow you to claim a tax refund and social welfare benefits if you are unemployed. A P45 also ensures that you avoid paying emergency tax if you start a new job.

Your employer should also provide you with a P60 which is a tax certificate with a record of your PRSI payments that you will need to claim social welfare benefits.

If you are being made redundant, an employer must provide a Form RP50.

It is not a legal obligation, but there is a welcome trend of organisations providing wellbeing supports to people who are being made redundant.

John McElligott, COO and Head of Kara Connect in Ireland said, “When it comes to redundancies or layoffs, employers should ensure those impacted have access to wellbeing resources so they can cope effectively.

“Most large organisations provide a package for impacted employees which can include reskilling or training to help them move to their next role. There’s a growing recognition that equipping former staff with emotional and wellbeing support is as important as skills when it comes to finding future employment.”

Redundancy payments

Redundancy is when your job no longer exists in a company, because the business is closing or reducing its staff numbers.

If you have been made redundant, you may be entitled to a statutory redundancy payment . A redundancy payment is a one-off payment based on your pay and how long you have worked with the company.

Employees with at least two years of continuous service with the same employer have three main rights in redundancy situations, according to CIPD Ireland.

“Firstly they are entitled to notice of redundancy in writing at least two weeks before the date on which they will be made redundant. This is shorter for employees with less than 13 weeks service, and longer for long serving employees ( and some employers may pay in place of such notice),” said Ms Connaughton.

“Secondly employees with two or more years of service are entitled to redundancy pay. This must be at least two weeks pay for each year of continuous and reckonable employment, plus one additional week’s pay. This redundancy payment is capped at €600 per week.”

She said in practice many sectors operate higher levels of redundancy pay. The Department of Social Protection has a redundancy calculator, so employees can use that to work out the amount due depending on their employment start and finish dates.

“A third entitlement is paid time off to look for alternative employment or arrange for training.”

Social welfare payments

As an employee, you pay income tax, Pay Related Social Insurance (PRSI) contributions and the Universal Social Charge (USC). If you lose your job and become unemployed, you are entitled to tax relief benefits and social welfare entitlements.

When you lose your job you should register as unemployed with your local Intreo Centre or social welfare office.

If you have paid enough PRSI contributions, you will be entitled to a payment called Jobseeker’s Benefit. If not, you may be entitled to a means-tested payment called Jobseeker’s Allowance.

Managing money on a reduced income

Managing money during a cost of living crisis is already stressful, but if you lose your job it heightens those worries. There are some steps you can follow to take control of your finances and help you cope with a reduced income.

The Consumer and Competition Protection Commission advises to complete a financial health check to give a clear picture of your situation which will make it easier to identify where you need to make changes.

If you have a mortgage and are having trouble making your repayments, or you think you will soon be in difficulty, contact your lender as soon as possible to explain your situation and to discuss your options.

Check if you have payment protection insurance cover to help you meet mortgage or loan repayments while you are out of work.

The CCPC also has a spending calculator which shows you how much you are spending on everyday items every month and every year.

Consider switching your utility bills to a budget account to help you spread out the cost.

Advice on the next step in the search for a new job

While losing a job feels traumatic when it happens, many people go on to change job or career and take a positive life step, according to Ms Connaughton of CIPD Ireland.

“Being made redundant is a time to step back, review your current skills, think through what you enjoy doing for work, and how you want to approach your future. There are lots of state-funded training and education opportunities available to support employees to build their skills for the future and find secure work,” she advised.

Sam McIlveen, MD of StepStone Ireland said changing job, whether it is a planned decision or a forced one due to redundancy, is a big one. “Job searching can be an unsettling time so it’s important to set wellbeing indicators for yourself to help bring structure to the process but also ensure you know when to stand back when these feelings of disappointment come over you.”

He said it is crucial to put structure around your day if job hunting full-time. “Limit the amount of time you allocate to your job search across your week. Set aside a number of hours each day but not so much time that it isn’t practical to achieve. Less is more when it comes to staying well and avoiding job search fatigue.

He also advised to be selective and precise in the application process. “Identify exactly what it is about the job, the organisation and your future career that makes you want to apply for this specific job.”

Job hunting can feel lonely, so Mr McIlveen said don’t be afraid to ask for support.

“Talk to family and friends about your job search. You might decide to work with a coach or a mentor to guide you through the process.

“Alternatively, you might attend some professional membership networking events, many of which are now virtual, to learn about changes and updates in your industry. Meeting others and learning is excellent in any case, but in some cases, it may lead to a connection that could become a job.”

John McElligott of Kara Connect said he would advise anyone who has lost their job to enquire about accessing wellbeing support – either traditional counselling or coaching – from their employer as part of their leaving package.

“In the absence of such supports from the employer, talking to friends, family or a therapist can help them feel secure and comfortable discussing their feelings. We’re seeing a big difference in how different generations cope with the challenges of losing a job with younger generations much keener to talk about the mental health impact.”