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YAHOO COULD BE forced to repay more than €1 million in state jobs grants as the company trims its local headcount after pledging to add 200 workers.
In 2013, the company announced a major expansion of its Dublin operations centre, promising to add the staff to its operations within 12 months.
Two years later, Taoiseach Enda Kenny, who met with the company on an IDA trade mission in the lead-up to the jobs announcement, was on hand when Yahoo took the wraps off a new docklands office with space for 450 people.
However accounts just filed for Yahoo! EMEA, the company’s main arm in Ireland, show it employed an average of 277 people last year – down from 293 in 2014. On average, the company had 229 staff on its books in 2013 and 165 in 2012.
The recent reduction in local staff came before Yahoo CEO Marissa Mayer announced in February that another 1,500 jobs were expected to go at the firm out of a global workforce of more than 10,000.
Mobile phone provider Verizon since struck a deal to acquire Yahoo’s operating business, which mainly includes its online and advertising networks, for $4.8 billion.
Workforce reduction
The accounts show that Yahoo’s Irish offshoot, which includes its headquarters at North Wall Quay and a data centre at Ballycoolin, spent more than €1.2 million on staff cuts during 2014 and 2015.
A note attached to the documents said the company had “implemented a strategic workforce reduction programme to align resources with the company’s product strategy”.
A further €2 million bill was recorded for redundancies to flow after the February global job-cut plans were revealed.
The accounts said the firm received a €1.77 million government grant “for the provision of employment” but as of September this year it could be forced to hand back €1.1 million from the amount for “breach of employment thresholds”.
A Yahoo spokeswoman told Fora hiring had taken place in Dublin every year since 2013 – and continued to take place, with a number of positions currently open.
“Numbers were slightly down at end of 2015 due to our changing business profile,” she said, adding the IDA grant hadn’t been repaid as it was contingent on future employment levels.
A spokeswoman for the IDA said the agency didn’t comment on individual client company matters, however all grants were “covered by strict legal agreements” and it would try to recover funds when any company failed to maintain grant-aided jobs.
Higher turnover
The accounts also show Yahoo funneled nearly €385 million through the Irish subsidiary from its Europe, Middle East and Africa (EMEA) Operations - a 20% increase on the Irish company’s turnover for 2014.
It reported a pre-tax profit of €3.8 million after the vast bulk of the income was spent on its ‘cost of sales’, administrative expenses and loan interest. The company’s tax bill for the year was listed as €1.16 million.
The documents said the implications of the sale to Verizon, which was still to be cleared by regulators, “are being assessed” but they were “not expected to have an immediate impact on the operating activities in the region”.
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“could” but this is Ireland so won’t!
€385 million funneled through Ireland yet only €1.16 paid in taxes, an rate of just 0.3%.
We are often told here that these companies have to be given these tax breaks so that they generate employment.
So the Corpotate tax at 12.5% on this €385 million would be €48.125 Million and they paid €1.6 Million. So generating 277 jobs costs the State €46.525 Million or €167,960 per job.
Kinda blows that yarn out of the water!!!
Yeah right, tiz grand lads we’d never expect you to pay back a penny.
In Ireland we only go after the minions for what they may owe.
Welcome to Ireland, a tough little country for humungous American corporations.
@Daniel Fontaine:
Publish the list of IDA and other Government Agency grants since 2011 and “reclaimed” unusef job creation/ iinvestment money.
Taxpayers money so FactCheck it.
This is a great Country to do business in, what do you think Enda.
@von:
Let them take Kenny (the village idiot), and then they don’t have to pay anything back.
We even give the cash to take and keep Kenny, (the village idiot).
Great where’s the cheque ? Show us the money !!!
Yahoo unfortunately have the services of one of the most devious PR organisations in Europe. Be assured nothing will be given back by the time this PR out fit called the Irish government are done with it.
The first picture has a yahoo talking about yahoo in it…
No doubt Kenny, Noonan & Co will find a way to give them a few bob to get themselves over thus sticky patch and to help with their “changing business profile”. Does anyone speak plain English anymore?
Cameron londford going to low cost romania. With expensive gear bought with irish govt grant aid. Most recent was €14mln acc. Rte Drivetime. Also vat and corporate tax breaks. 230jobs/families hit in longford.
Sure this seen as a interest free loan, and that money is just resting in their accounts too be sure
Looks like one Yahoo running the country.
have your say