Irish Life & Permanent, Ireland’s biggest bancassurer, offered workers up to €35,000 ($44,200) each to take a career break of three years. Elsewhere in Dublin, Davy, the country’s largest stockbroker, is seeking a 5 per cent reduction from employees on any pay above €50,000 to reduce the number of job cuts necessary.

Such moves are part of an increasing trend across Europe as companies react to plummeting demand by trying to find innovative solutions that fall short of simply firing people. In looking at possibilities such as pay cuts, leave of absence or job-sharing, companies are hoping to avoid some of the problems from the last downturn when cutting staff too severely led to trouble when a recovery came.