Over 300 people losing their jobs as US firm Carelon to pull out of Ireland by end of the year
OVER 300 PEOPLE in Limerick are set to lose their jobs as the IDA-backed health tech company Carelon is to pull out of Ireland by the end of the year.
Staff were told at the end of March that the company, which is owned by one of the biggest health insurance providers in the US, Elevance Health, was considering ceasing all operations in Ireland.
In a meeting today, company leadership told staff that they are all set to lose their jobs. Some people will have their employment terminated by 1 August, some by 3 October, and finally all contracts will be terminated by 31 December.
A representative for Carelon today said that following a consultation process with employees and after 'carefully considering other options' the 'difficult' decision has been made to cease operations in Ireland.
'The process to close operations will occur over the course of the next several months, and we expect it to be completed by the end of 2025. We greatly appreciate the work and dedication from associates in Ireland over the past few years and are committed to supporting them during this time,' they added.
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A staff member who attended the meeting today told
The Journal
that employees won't receive letters confirming their redundancies, or when their employment is being terminated, until Friday.
Previously staff
told
The Journal
that 'hysteria' had broken out amongst the workforce, while they were in the dark about whether they would be made redundant or not, as some were expecting children, some had bought houses, and many came to Ireland from overseas to work for the technology solutions firm, and were now worried about their visas.
It's understood that the parent company considered several options including reduced layoffs and rebadging before arriving at this decision.
The IDA has provided considerable funding to Carelon since 2021. The agency said at that time that the company choosing Ireland as a site for expansion was a sign that Ireland has become a destination for 'top talent and investment in the healthcare sector'.
In the financial year ending 2023, it provided the company with over €832,000 in Government grant money, having given the company over €375,000 the year before. Employees have been told by higher management within Carelon that the company is making this decision in order to reduce the number of sites it operates.
Minister for Enterprise Peter Burke said at the start of May that the Government and the IDA were acting as 'first responders' and were working with Carelon to try and explore options.
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