CLICK HERE TO GET YOUR BELFAST TELEGRAPH NEWSPAPER DELIVERED TO YOUR DOOR EVERY DAY

Belfast Telegraph

  • nijobfinder
  • nicarfinder
  • propertynews.com
  • Classified

Dell cuts 1,900 Limerick jobs

Thursday, 8 January 2009

Computer giant Dell is to axe 1,900 jobs at its flagship manufacturing plant, the company confirmed today.

In a devastating blow for the region, the US multinational will end production at its Limerick factory in the west of Ireland in favour of a new facility and cheaper workforce in Poland.

Dell said the move was part of a three billion US dollar global cost-cutting drive announced last year.

Business leaders in the Limerick region said the knock-on effect of such a massive jobs blow would cripple the local economy, with up to 6,000 other workers in related companies now at risk.

Sean Corkery, vice-president of Dell operations in Europe, the Middle East and Africa, described the cuts as a difficult decision.

"We are proud of our 18-year tenure as a major manufacturer in Ireland," he said.

"This is a difficult decision, but the right one for Dell to become even more competitive, and deliver greater value to customers in the region."

Dell is pressing ahead with the swingeing cuts despite personal pleas to the firm's founder Michael Dell by Irish Tanaiste (deputy prime minister) Mary Coughlan and Defence Minister and Limerick TD Willie O'Dea during a trade mission in Texas last year.

The lay-offs will begin in April, with management hoping the 1,900 cuts will be finalised by this time next year.

Dell will continue operating in Ireland with 1,100 workers at the Raheen facility focused on supporting overseas manufacturing through product development, engineering and logistics. The 1,300 marketing and sales staff at Dell's Cherrywood plant in south Dublin will not be affected.

The computer maker is one of Ireland's largest employers.

Established in Ireland in 1990, Dell employed more than 4,500 staff at its height and is the country's biggest exporter and second largest company.

It accounts for approximately 5% of Irish GDP and last year contributed 140 million euro (£126 million) to the mid-west economy in wages alone.

he Dell cuts are being billed as Ferenka II - after the Dutch wire company which shut its Limerick operation in 1977 with 1,400 job losses after growing to become the city's leading employer.

The Tanaiste said she was deeply disappointed by Dell's move to Poland.

"My immediate thoughts and concerns are for the workers and their families and those directly impacted," Ms Coughlan said.

A taskforce has been set up to help those affected in the area, involving the University of Limerick, local institute of technology, Enterprise Ireland, training agency Fas and other state agencies.

"In my discussions and meetings with Dell, it was always made clear to me by the company that any decisions that it would take were in no way a reflection on the quality of its workforce or the operating environment in Ireland," Ms Coughlan said.

"I recognise that a fundamental change in its business model was considered necessary by the company to enable it to continue to compete in the global market.

"A successful Dell is in our interests as, even with this level of redundancies, Dell remains a major employer in Ireland and a major contributor to the economy."

Ms Coughlan said the Government and enterprise agency IDA Ireland will work with Dell to attract other investment outside manufacturing.

Fine Gael TD and deputy finance spokesman Kieran O'Donnell said workers needed every support available.

"Dell has already taken the welcome step of offering to retrain the workers being made redundant, but this must be backed up by the Government," Mr O'Donnell said.

Labour TD for Limerick East Jan O'Sullivan said: "When the knock-on impact on supplier companies is taken into account, the total job losses will run to many thousand and the economic cost through loss of spending power is almost incalculable.

"This is a black day for Limerick.

"However, Limerick has recovered from economic blows in the past and I have no doubt that, with the political will and the appropriate supports, we can recover from these losses also."

Local TD and junior minister Peter Power urged people to remain positive about the future of the Limerick economy.

"My thoughts today are with the employees and their families who have received notice of the closure of the manufacturing facility and to assure them that any Government support that can be given will be available to them," he said.

President of the University of Limerick Professor Don Barry said college staff have been assessing how the Mid-West region can respond to the expected massive job losses.

"UL has a well-established track record of collaboration with industry and I want to reaffirm our commitment to the role of this institution as an economic driver for the region and the country," Prof Barry said.

"We in UL will do all in our power to enable those affected acquire the skills to rejoin the workforce as quickly as possible."

Post a comment

Limit: 500 characters

View all comments that have been posted about this article

Comment
Your details

* Required field

Offensive or abusive comments will be removed and your IP address logged and may be used to prevent further submissions. In submitting a comment to the site, you agree to be bound by BelfastTelegraph.co.uk's Terms of Use.

Posts submitted in UPPERCASE letters will be rejected.

NI Travel and Tourism Awards

  • Sean Crummey entertains guests at the Northern Ireland Travel and Tourism Awards 2009
  • Sean Crummey, Maureen Ledwith and Nan Short with Craig Doyle at the Slieve Donard Resort and Spa at the Northern Ireland Travel and Tourism Awards 2009
  • Rowan Devereux and Ciaran Mulligan of Blue Insurances with Craig Doyle at the Slieve Donard Resort and Spa at the Northern Ireland Travel and Tourism Awards 2009

NI Travel and Tourism Awards

Deloitte Technology Fast 50 Awards

  • From left to right, Daniel McRitchie (Andor Technology, placed 48 in this year?s Fast 50 ranking); Mark McCusker (Texthelp Systems Ltd, placed 40th in this year?s Fast 50 ranking); Trevor Jordan (Andor Technology); and Seamus Scullion (Texthelp Systems Ltd).
  • James Greer, proprietor of Greer Publications, presents the ?Rising Star? award to Mary McKenna and Paul McElvaney of Learning Pool Ltd.
  • From left to right: Daniel McRitchie and Trevor Jordan of Andor Technology.

Deloitte Technology Fast 50 Awards

CEF Construction Awards 2009

  • CEF Construction Awards 2009
  • CEF Construction Awards 2009
  • CEF Construction Awards 2009

CEF Construction Awards 2009

Newry Chamber of Commerce Banquet

  • Newry Chamber of Commerce Banquet. Thursday 8 October 09
  • Newry Chamber of Commerce Banquet. Thursday 8 October 09
  • Newry Chamber of Commerce Banquet. Thursday 8 October 09

Newry Chamber of Commerce Banquet

Connecting Employers to Communities

  • The Connecting Employers to Communities event hosted at Hillsborough Castle by Business in the Community on 23 September 2009.
  • The Connecting Employers to Communities event hosted at Hillsborough Castle by Business in the Community on 23 September 2009.
  • The Connecting Employers to Communities event hosted at Hillsborough Castle by Business in the Community on 23 September 2009.

Connecting Employers to Communities

Ulster Tatler Awards 2009

tatler awards.

In pictures: Doing the business

  • Christmas appeal for children launched
Business in the Community?s Cares programme has launched its Cares At Christmas appeal with charity Action for Children to help companies and individuals make a difference to vulnerable youngsters. From left to right are Sam Davidson, human resources director at sponsors Henderson Group, Maureen Taggart, chair of Cares Leadership Team and Louise Ward-Hunter, strategic director of Action for Children. To register interest in the appeal, email caresni@bitcni.org.uk
  • The outstanding global performance of Northern Ireland accountancy students has been recognised at the Association of Chartered Certified Accountants (ACCA) Awards in Belfast. Not only did three local students take top place in Ireland but there were also three performances in ACCA?s global top ten and a further five in the top 20. Hazel Bradbury joined Keith McManus, president of the ACCA?s Ulster Branch to celebrate coming 8th out of 24,000 global participants and first in Ireland in the audit assurance exam.
  • Revamped Stena vessel ship-shape for Scotland voyage
Former Miss Northern Ireland Judith Wilson puts the finishing touches to the Stena Navigator to ensure it?s in ship-shape condition for its first voyage since its return. The upgraded Stena Line ship sets sail from Belfast to Stranraer tomorrow. The vessel, which caters for both passenger and freight traffic and has a capacity of up to 1,500 passengers and up to 280 cars or 50 lorries, means the ferry company now offers up to 14 crossings on the route each day. The addition of the Navigator and a £2m upgrade programme, which has been carried out in Belfast Port over the past month, represents a total investment in the route of over £6m

Cream of the crop in the business world

NI's Top 100 Companies

Top 100 Companies

Who's up and who's down in 2009


Business Digest by Email

Sign up for your free weekly business newsletter