Business

Amid tech industry woes, are other companies likely to take the same path as PayPal and eliminate Irish jobs?

Published

3 years ago

May 29, 2022

At 10 am on Tuesday on Tuesday, staff from PayPal’s headquarters located in Blanchardstown and Dundalk were summoned at the last minute to attend an emergency meeting.

Then they received the news that nearly 300 would lose their jobs on July 12th.

Naturally, it was an unexpected shock since there was no warning or signals from the local area warning of anything amiss.

Certain PayPal staff members only heard about the cuts via the media. One employee said they were “confused and nervous.”

It is understandable that even though many industries have suffered massive damage over the last two years due to the Covid-19 virus, technology has shown incredible resilience and has pushed ahead.

All that changed was recent months as the grip of Covid-19 diminished and consumers were able to return to actual-world experiences like shopping.

PayPal is only one of many tech companies affected by that realignment and reassessment.

Informally, the company claimed that the decision to reduce its operations in this area was the outcome of a “review of the needs of its operations” and was taken in conjunction with changes to help expand its operations “to satisfy the ever-changing demands of its customers, and be and ready for the next chapter of expansion.”

In another way, it’s cutting costs to improve efficiency.

As with most tech companies, the payment provider online witnessed a rise in business amid Covid restrictions across the globe when many people were shopping from their homes, using their disposable income, which was accruing as they didn’t travel or have a social gatherings.

In 2020, the price of its shares soared 111% and increased by 25% more during the first half of the year.

Then it exploded, and, with inflation taking a toll on consumers’ spending, supply chains being disrupted because of the Ukraine conflict, and businesses losing at a faster than anticipated from its previous owner and its largest eBay customer, the fortunes of PayPal is now in reverse.

The shares hit their highest in July of the previous year. Its shares have dropped 73 percent of their value. They are now back to their December 2018 levels.

In an analyst conference call in April, the chief executive officer of the company, Dan Schulman, said that the company was pulling its medium-term perspective.

Mr. Schulman stated that 2024 is an unpredictably difficult year to project and said, “forecasting regular consumer e-commerce spending after we have gotten from the pandemic extremely complicated.”

PayPal is not the only company that has this problem.

Although the difficulties faced by PayPal have been extremely severe, their troubles aren’t unique to the tech industry, and the story has been repeated by a variety of other companies at different levels.

The tech-focused Nasdaq 100 index has been down by a quarter up to now, reflecting the deterioration of sentiment towards tech stocks that are widely believed to have been overvalued after they reached their highest point this year.

The downturn of the last few months has led experts to believe that we may be in danger of a tech-driven market crash like the one that exploded during the dot-com bubble in the late 1990s and the early noughties.

“US technology stocks have been vastly undervalued,” stated Peter Brown from Baggot Investment Partners.

“What you’re looking at is a twelve-year trend in purchasing everything that doesn’t have to earn money. It’s all about growth and momentum strategies and investors pouring into these stocks, and it has been a very profitable strategy for a long time. Even with Tesla being unable to make profits, and even with Amazon not earning any money, that mattered was.”

“You buy them because they’re always going up. The strategy was the case until December. Now, we’re seeing a major shift away from this strategy and into value. Some are saying, “This technology thing is done.”

“And it’s not just over for a moment. It’s all already. It is over. ever again.”

Tech stocks are also seen as particularly vulnerable to increases in interest rates used by central banks to deal with the rising inflation.

They are also dealing with other common problems that are more common, such as tightening of the labor market supply-chain shocks, higher costs, the loss of market share in the Russian market, fierce market competition, and fears of a recession.

The impact has been evident throughout those so-called FAANG companies: Facebook (now Meta), Amazon, Apple, Netflix, and Google.

Netflix had lost 2/3 of its value this year due to now losing subscribers after an enthralling few years when viewers stuck in their homes due to Covid restrictions joined in droves.

Amazon is also suffering but to a lesser degree. The price of its shares is down by a third following the losses of $3.8 billion in the first quarter, and its growth rates have slowed down to levels that were last seen in 2001.

Apple has survived the storm better than many and beat Wall Street’s expectations for its most recent quarterly earnings.

Even its share price has been pulled down by 20 percent this year due to the negative outlook, with the manufacturing supply chain problems in China impacting growth.

Google’s parent company Alphabet has suffered a loss of a part of its worth in the past year, following a less than the revenue forecast in the first quarter, with YouTube’s performance particularly disappointing.

The parent company of Facebook also beat analysts’ expectations during the initial quarter, despite gaining new users. Additionally, it was recently reported that it had implemented the hiring freeze for specific segments of its business even though its CEO Mark Zuckerberg has said that cutting jobs isn’t scheduled.

It will be an enormous relief for the three hundred Meta employees in Ireland and the 6,000 other Meta employees in the country who help support the company’s activities.

Are other tech companies able to cut jobs in this area?

However, the PayPal situation raises questions as to whether we may continue to see more lay-offs throughout the tech industry, in particular among the huge multinationals on which the economy is now dependent.

In different parts of the US and Europe, certain tech companies have also started to trim their workforces across the globe, including recent job losses at companies like Robinhood, Hopin, Klarna, Peloton, Netflix, and Fast Checkout, which closed down.

In this case, 162,000 workers were working within the Information and Communication Technology sector during the first three months this year, as per the Labour Force Survey released by the CSO this week. However, it was down by 4,000 compared to the prior quarter.

There is plenty to lose from any decline in technology.

However, those in direct foreign investment (FDI) aren’t concerned.

The IDA will be due to announce its mid-year numbers in July and has enjoyed solid first-half results, including a series of announcements of jobs, mainly in the technology sector.

Apple’s pledge last week to construct a new office building on the campus of Cork capable of accommodating up to 1,300 people is the latest instance of this.

The PayPal announcement is not considered yet to be the keystone in the coal mine, although that’s not entirely ruled out despite Ireland’s current status as a European technology hub.

Financial analysts agree that, despite the downward pressures on their stock prices, the core values of many tech companies are solid, and, if they are affected in any way, the employment rate in the tech sector could be the most likely one to get impacted by the slowdown in global economic growth as opposed to the end in the current tech share market rally.

“A number of these famous names did…spend an enormous amount and took on an astonishing amount of staff during Covid and the epidemic due to the demands they witnessed,” said Suzie Berkery, who is a senior stockbroker for Cantor Fitzgerald

“We’ve always believed that what’s happening in technology over the past few years is similar to the industrial revolution. We all know that everything is going in that direction. We’re buying these products, and we’re all using the same technology.”

“And it’s not changing. The pandemic hit us. Now we are on the verge of paying back that, and that supply chain problem is now a huge issue. However, is this a reason to be concerned or witnessing employees being fired? No.”

Business

Post-Purchase Customer Experience – Why It’s the Key to Retention and Loyalty

Published

4 months ago

February 6, 2025

Tina Gondolin

In today’s fiercely competitive marketplace, securing a sale is just the beginning of the customer journey, not the end. Post-purchase customer experience has emerged as a pivotal aspect of not only retaining clients but also building unwavering loyalty.

Once the transaction is completed, a new chapter unfolds—one that can either transform a one-time buyer into a lifelong advocate or reduce them to just another statistic in the sea of disengaged consumers. Every interaction a customer has after the purchase, from personalized follow-ups to seamless customer support, plays a crucial role in shaping their perception of your brand.

As the dust settles on their initial decision to buy, it’s the ongoing experiences that will ultimately determine whether they return for more or drift away into the clutches of competitors. Understanding and optimizing this journey is not merely an option anymore; it’s a necessity for businesses striving to cultivate lasting relationships in a world where choices abound.

The Path to Loyalty: How Post-Purchase Experience Shapes Customer Relationships

Source: reverselogix.com

The journey to fostering customer loyalty begins long after the initial purchase is made; it is intricately woven into the fabric of the post-purchase experience. Picture this: a customer who eagerly anticipates their delivery, receiving a thoughtful follow-up email that not only confirms shipment but also includes tips for maximizing the product’s use—this simple gesture cultivates a sense of connection.

Afterward, a timely survey asking for feedback demonstrates that their voice matters, transforming a transactional relationship into a dialogue. Each element, from personalized recommendations based on their purchase history to dedicated customer support, deepens trust and enhances the emotional bond.

In this ever-competitive landscape, understanding that retention hinges not on the initial sale, but on the entire journey afterwards, can unlock the secret to creating lifelong advocates for your brand.

Beyond the Sale: The Critical Role of Aftercare in Customer Retention

Source: globalresponse.com

In the whirlwind of commerce, where transactions often take center stage, one critical aspect frequently slips through the cracks: aftercare. This pivotal phase begins the moment a customer clicks “confirm” on their order, extending well beyond the point of sale.

It’s not merely a follow-up; it’s a commitment to nurturing the relationship, a chance to reinforce the connection established during their buying journey. Think of aftercare as the secret sauce of customer loyalty—personalized messages, helpful tips, and timely support can transform an ordinary experience into an extraordinary one.

Customers who feel valued and supported are more likely to return, not just for the products they cherish but for the community and service that accompany them. In a landscape flooded with choices, businesses that prioritize aftercare don’t just sell products; they cultivate loyalty, turning one-time buyers into lifelong advocates.

Conclusion

Source: youngurbanproject.com

In conclusion, the post-purchase customer experience is a critical pillar in fostering retention and loyalty among consumers. By understanding and enhancing this stage of the customer journey, businesses can build lasting relationships that go beyond a single transaction.

Effective post-purchase marketing not only reinforces the value of the initial purchase but also encourages repeat business through personalized communication and ongoing engagement. As companies strive to differentiate themselves in a competitive landscape, prioritizing the post-purchase experience will prove essential in transforming customers into brand advocates, ultimately driving sustainable growth and long-term success.

Business

From Trader to Business Owner – How to Build Your Own Trading Firm

Published

5 months ago

January 3, 2025

Tina Gondolin

Transitioning from a trader to a business owner is a thrilling journey, a leap from the exhilarating chaos of the markets into the strategic realm of entrepreneurship. Many traders, fueled by their passion for the financial world, dream of establishing their trading firm—a bold move that promises both independence and potential prosperity.

Yet, this path is strewn with challenges, requiring not just deep market knowledge but also formidable skills in management, finance, and strategic planning. How do you go from analyzing charts and executing trades to overseeing a team of traders and making critical business decisions? In this article, we’ll explore the multifaceted process of building your trading firm, offering insights on everything from legal considerations to cultivating a strong company culture.

Prepare to navigate the nuances of this transition—where the fierce nature of trading meets the intricate art of business ownership. Your journey begins now.

Identifying Your Niche in the Trading Market

Source: udemy.com

Identifying your niche in the trading market is an essential first step on your journey from trader to business owner. Start by reflecting on what truly captivates you—whether it’s forex, stocks, options, or commodities—and the unique strategies you’ve developed through experience.

Tools like depth of market software can play a pivotal role during this process, offering detailed insights into market trends and liquidity levels, which can help you pinpoint areas of opportunity. Dive deep into market trends, analyzing which segments show potential for growth and profitability, while also considering the competition.

Don’t shy away from experimenting; this phase often involves trial and error, as you test different trading styles against varying market conditions. Additionally, leverage your existing knowledge to carve out a specialized area, perhaps focusing on a demographic or asset class that isn’t saturated.

Ultimately, the key lies in blending your passion with market demands, creating a distinctive offering that speaks to both your interests and the needs of prospective clients.

Creating a Business Plan for Your Trading Firm

Source: www.getwork.co.uk

Creating a business plan for your trading firm is not merely a formality; it’s the foundation upon which your entrepreneurial dreams will stand. Begin by defining your vision—what kind of trading strategies will you employ? Will you focus on equity markets, forex, or perhaps cryptocurrencies? This clarity will inform every aspect of your plan, from your target market to your operational framework. Next, conduct a thorough market analysis to identify your competitors and potential clients, ensuring your unique selling proposition shines brightly amidst the noise.

Financial projections are crucial; outline your startup costs, expected revenues, and break-even analysis to illustrate the viability of your venture. Don’t forget to address risk management—how will you safeguard your capital against market volatility? Each section of your plan should weave together, showcasing not only your ambitions but also a pragmatic approach to navigating the complexities of the trading landscape.

This document is your blueprint for success; invest the time to make it comprehensive and compelling.

Legal Considerations for Starting a Trading Firm

Source: luxalgo.com

Establishing a trading firm entails navigating a labyrinth of legal considerations, intricately woven into the fabric of financial regulations. Aspiring business owners must first determine the appropriate business structure—whether a sole proprietorship, partnership, or corporation—each carrying its legal ramifications and tax obligations.

Securing the necessary licenses and permits is paramount; depending on your trading strategies and the markets you operate in, you may need to register with regulatory bodies like the SEC or FINRA. Additionally, compliance with anti-money laundering laws and data protection regulations will shape operational protocols, safeguarding both your firm and clientele. As you forge ahead, consulting with legal professionals proficient in financial regulations is not just wise—it’s essential, ensuring that your firm not only thrives but does so within the bounds of the law, avoiding the perilous pitfalls that could threaten your entrepreneurial dreams.

Conclusion

In conclusion, transitioning from a trader to a business owner by establishing your trading firm is an exciting yet challenging journey that requires careful planning, strategic decision-making, and an adept understanding of market dynamics. By leveraging essential resources, including cutting-edge tools like depth-of-market software, you can enhance your trading strategies and gain valuable insights into market trends.

Building a successful trading firm involves not only honing your trading skills but also developing a solid business framework, fostering a collaborative environment, and staying agile in a rapidly evolving marketplace. With the right approach and commitment to continuous learning, the path from trader to business owner can lead to remarkable growth and fulfillment in the world of finance.

Business

How the Rise of AI and Automation is Impacting the Accounting Profession

Published

6 months ago

December 13, 2024

Anita Kantar

The adoption of advanced technologies is reshaping how businesses handle financial processes. Tools powered by artificial intelligence (AI) and automation are transforming traditional workflows, introducing both opportunities and challenges for professionals in finance.

Accountants must now adapt to thrive in a landscape dominated by innovation.

Key Points:

Automation reduces manual data entry, boosting accuracy.
AI enables predictive insights for better decision-making.
Technology frees up time for strategic tasks.
Skills in data analysis and AI tools are essential.
Ethical considerations are critical for implementing automation.

Automation and Its Role in Streamlining Financial Tasks

Automation tools have become indispensable for reducing repetitive and time-intensive tasks. Functions such as payroll processing, tax filings, and financial reconciliations can now be completed faster and with fewer errors. Businesses looking to optimize their operations rely heavily on platforms like those recommended by Accountancy Capital for sourcing qualified professionals. For more information visit their website www.accountancycapital.co.uk.

By eliminating the burden of repetitive tasks, automation allows accountants to focus on advisory roles, providing higher-value services to clients. This shift highlights the need for upskilling to remain competitive in a changing landscape.

Source: rvnatech.com

How AI Improves Decision-Making in Financial Management

AI tools analyze vast amounts of data to identify patterns and trends that humans might overlook. This capability enhances decision-making, particularly in areas like forecasting and risk assessment. For example:

Predictive analytics ─ AI can anticipate cash flow trends or market risks, giving businesses a proactive advantage.
Fraud detection ─ Algorithms flag irregularities in real-time, reducing financial losses.
Expense optimization ─ Automated systems recommend cost-saving measures based on historical spending patterns.

Leveraging such capabilities requires an understanding of technology, coupled with expertise in interpreting results for actionable insights.

Challenges Created by Technological Advancements

The rapid adoption of AI and automation poses challenges for professionals, including:

Skill gaps ─ Transitioning from traditional methods to tech-driven workflows require upskilling.
Job displacement ─ Roles focused on manual tasks are at risk of becoming obsolete.
Ethical concerns ─ Decision-making algorithms may introduce bias if not properly monitored.

Mitigating these challenges involves ongoing education and embracing continuous professional development.

Source: runeleven.com

Skills Accountants Must Develop to Stay Relevant

The changing landscape necessitates a shift in core competencies. Key skills include:

Proficiency in data analysis tools ─ Knowledge of software that integrates AI is crucial for staying relevant.
Soft skills ─ Communication and advisory capabilities remain vital, even as technology handles routine tasks.
Ethical awareness ─ Understanding the limitations and implications of technology ensures responsible implementation.

Combining traditional expertise with technological fluency is the key to long-term success.

Benefits of Automation for Accounting Firms

Automation tools deliver measurable benefits for firms, including:

Efficiency gains ─ Faster processing of routine functions, reducing turnaround times for clients.
Cost savings ─ Automated workflows lower operational expenses.
Scalability ─ Firms can handle larger client bases without increasing staff.

By adopting technology thoughtfully, firms can maintain a competitive edge while providing exceptional service.

Source: mcgowanprofessional.com

Ethical Implications of Adopting AI in Finance

AI’s growing role introduces ethical concerns that professionals must address. Bias in algorithms, privacy concerns, and transparency issues are common challenges. Firms must establish guidelines to ensure that AI tools align with ethical practices. Regular audits and accountability measures help maintain trust.

Future Trends and Opportunities in Financial Automation

Looking ahead, technologies like blockchain and machine learning will further transform financial practices. Accountants who embrace innovation will find opportunities in consulting, compliance, and strategic planning. Staying informed about emerging trends ensures readiness for new developments.

Conclusion

The rise of AI and automation is not just reshaping workflows but redefining the role of accountants altogether. By investing in upskilling and adopting tools thoughtfully, financial professionals can transition from traditional roles to strategic advisors, ensuring continued relevance in an evolving landscape.