Business
RTÉ Aims to Reduce Workforce by 100 Amid Voluntary Exit Challenges
The Irish public broadcaster, RTÉ, is poised to reduce its workforce by approximately 100 employees as part of a cost-cutting initiative, despite facing challenges in its Voluntary Exit Programme (VEP). The broadcaster has struggled to convert the interest expressed into actual departures, with the first group of employees set to leave on October 31, 2023.
As of now, RTÉ has received 325 expressions of interest for the VEP, yet translating those expressions into confirmed departures has proven difficult. Insiders indicate that potential candidates are weighing the financial implications of taking the package, with many employees in their late 40s and early 50s hesitant to accept the offer. One source stated, “The question people needed to ask themselves was, ‘Will I be better off financially by taking this package?’ and for many, the answer was no.”
RTÉ management has acknowledged the difficulties in achieving the expected number of exits. Concerns over the attractiveness of the offer, coupled with fears regarding the current job market, have contributed to the slow uptake. The voluntary departure package offers up to six weeks of pay per year of service, capped at €300,000, but many view the deal as insufficient, especially in light of tax implications.
A spokesperson for RTÉ clarified that employees leaving under the VEP are permitted to seek employment with independent production companies in Ireland and abroad. Nevertheless, frustration persists among staff regarding the distribution of cuts across departments, as some areas face significant reductions while others remain largely unaffected.
RTÉ’s annual report for 2023 indicates that the organisation employs 1,836 people, including 204 part-time or casual workers. As the VEP continues, applications are undergoing a comprehensive five-stage review process, overseen by RTÉ’s leadership team and the Board’s Remuneration and Management Committee.
While the first group of staff members will depart at the end of October, further departures are scheduled for November 30 and December 31. According to RTÉ, updates on the number of employees leaving the organisation will not be provided until the completion of the process.
The ongoing restructuring is part of RTÉ’s broader strategy to address financial pressures and streamline operations. The steering group overseeing the VEP includes representatives from McCann Fitzgerald Solicitors, ensuring that the process adheres to legal requirements and best practices.
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