Fears for hundreds of jobs at outsourcing firm Covalen amid potential redundancies

Fears are mounting for hundreds of workers at Covalen, a key service provider for tech giant Meta, as the company initiates consultations regarding potential job cuts at its Dublin base. The lack of transparency regarding the precise number of employees facing redundancy is fueling anxiety among the workforce, with reports indicating a significant number of roles could be impacted. This situation casts a shadow over the Irish tech sector, highlighting the precariousness of employment in outsourced roles, particularly those involving content moderation and AI training.

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Given what went on in November last year, with the previous round of redundancies, people expected further cuts down the line, but the extent, scale, and short notice of this has just really enraged many of our members.

This potential wave of redundancies is not an isolated incident. Covalen previously underwent a similar process in November last year, which saw around 400 jobs at risk. The lingering impact of that period, coupled with the current uncertainty, has understandably enraged members of the Communications Workers' Union (CWU). Their previous strike action in January, focused on redundancy pay and union recognition, underscores the ongoing tension and distrust between the company and its employees.

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The company is engaging directly and proactively to support the affected teams through this transition and is following the required consultation process in line with our obligations.

Adding to the broader context, Meta, Covalen's primary client, has itself announced significant global workforce reductions. While the direct impact on Meta's Irish operations, which employ approximately 1,800 people, remains unclear, the company's stated intention to increase reliance on advanced AI systems for content moderation signals a potential shift away from third-party suppliers like Covalen. This strategic pivot by Meta could have far-reaching consequences for Covalen and its employees, raising serious questions about the future of outsourced work in the evolving landscape of artificial intelligence.

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All employees continue to have access to our employee wellbeing support through Covalen's Employee Assistance Programme.