Payments firm Stripe has officially informed the Tánaiste and Minister for Enterprise Leo Varadkar of its plan to make some of its Irish-based staff redundant.
In reply to a written question from Social Democrats co-leader Catherine Murphy, the Department of Enterprise said that Mr Varadkar received a notification yesterday detailing proposed collective redundancies by the company.
"The notification confirms that the company is undertaking the collective redundancy consultation process required under the Act with the representatives of employees whose roles are at risk of redundancy," the reply stated.
Under employment law, companies proposing a collective redundancy are required to inform the Minister for Enterprise at least 30 days before the first dismissals take place.Companies are also required to carry out a 30-day consultation with employees and their representatives where collective redundancies are being proposed.
In an email sent to staff, founders Patrick and John Collison said the company had over-hired for the world we are in.
The Limerick brothers said the job losses will bring the numbers employed by the company back to 7,000 from around 8,000 currently.
Stripe employs around 600 people in Ireland and it is unclear how many Irish staff will be impacted by the decision as the company said the headcount reduction would not be applied evenly across the organisation.
The Government is being urged to help tech workers who are losing their jobs to establish their own start-ups.
Scale Ireland, the representative body for Irish tech start-up and scaling companies, has written to the Tánaiste Leo Varadkar outlining how it sees considerable merit in assisting those impacted by recent redundancy announcements to direct their skills and experiences into the indigenous tech start-up sector.
"Scale Ireland would welcome an opportunity to discuss with you and officials in your Department, the feasibility of a targeted support scheme to incentivise these individuals to either join an existing start-up or scaling company, or to explore the possibility of establishing their own start-up," the letter stated.
The firm said it was reducing the size of its global workforce by about 13% and letting more than 11,000 employees go.
After the announcement, the Tánaiste said his thoughts were with the employees affected and that it was a very difficult time of year to receive bad news.
"Staff affected will be offered full assistance from the government to find other employment, set up their own business or return to education or training," Mr Varadkar said in a statement.