Companies funded by Enterprise Ireland (EI) cut almost twice as many jobs as they created last year, according to the State development agency's annual report.
According to the report, Enterprise Ireland-backed firms created 10,522 new jobs last year but 18,525 people were laid off, with construction and construction-related companies worst affected.
The agency said the net loss of 8,000 jobs brought the number of people employed in client firms to 145,758.
The annual report also showed value of exports from Enterprise Ireland-supported companies grew 3 per cent in 2008 to €14.3 billion.
Due to the impact of the domestic recession and credit restrictions Enterprise Ireland said it had adjusted its focus and was now looking at ways to assist firms with access to finance as well as helping them win sales.
The agency had income of €362.4 million last year, up from €279.8 million in 2007.
Of this more than €220 million was issued in financial support to industry of which €100 million was paid in direct grants to Enterprise Ireland-supported companies.
It had a deficit before appropriations of €16 million at the end of the year and cash balances of €34 million.
Enterprise Ireland administers the enterprise stabilisation fund through which €100 million in Government funding will be disbursed to viable businesses coming under extreme pressure due to the current economic crisis.
The agency said today €50 million has been allocated this year. The remainer will be allocated in 2010.
Last year Enterprise Ireland provided support to 71 start-up companies, 42 of which were based outside Dublin and said it hoped these firms would create around 1,000 jobs over the next three years.
In total, Enterprise Ireland paid just over €100m to companies last year. The agency generated €22.9 million from sales and the redemptions of shares it held in companies it supported and a further €1.4 million in dividends.