BUSINESS
Dell to cut 250 Irish jobs
29-04-2008
by Bryan Collins
Dell has announced it is cutting up to 250 jobs from its operations in Dublin and Limerick -- a move labelled a "bitter blow" and "very worrying" by politicians.
The company's employees were informed on Tuesday afternoon about the mandatory job losses, although no details of a redundancy package have been announced. The 250 job cuts, from a total Irish workforce of 4,500, are part of Dell's wider organisational change across its European, Middle East and African (EMEA) operations. Overall, around 850 staff are being let go from Dell's 17,500-strong workforce in the EMEA area.
"All the operations globally have been reviewed. What has been announced today are changes across the European, Middle East and African operations," said a spokesperson for the company, speaking with ENN.
The Irish job losses will take place over the next nine months and will primarily affect Dell's Dublin-based staff in administrative and support functions such as IT, marketing, sales and technical support. A company spokesperson stressed that no Irish manufacturing jobs are being cut, but the Labour Party leader, Eamon Gilmore, pointed out that the losses are nevertheless "very worrying".
"The news that Dell Ireland is to shed over 200 jobs, primarily in their Cherrywood facility in South Dublin, is a very worrying development. These positions at Dell have been good jobs in a facility that has been a valuable source of employment for people in south Dublin," said Gilmore.
Analysts have claimed that the recent global economic slow-down has made it harder to sell computers. And, the company's CEO, Michael Dell said recently that Dell has some work to do on its cost base if it wants to restore competitiveness and ultimately drive long-term profitability. He is seeking a USD3 billion opportunity globally to drive the company's productivity and efficiency.
However, Fine Gael's Labour Affairs spokesman, Damien English, said the results of this drive are a bitter blow to the families affected. "The loss of 250 jobs is a bitter blow for staff at Dell's facilities in Cherrywood in Dublin and in Limerick. This news could not have come at a worse time for the families affected as jobs are drying up and the economic outlook is grim. The families affected will still have to pay for mortgages and cope with the rising cost of living," he said.
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