Accounts show Cork-based tech firm shed 255 jobs

SWINGEING cutbacks at the Irish arm of wireless technology manufacturer, Option Wireless has reduced the company’s workforce from 295 to 40.

A spokesman for the Cork-based firm confirmed the reduction yesterday as new accounts show the company moved into the red in 2008 after recording post-tax profits of €16.9m in 2007.

The figures show the company made a post-tax loss of €51,060 to the end of December 2008 when the company employed 295. That reduced to 190 at the end of last year and the spokesman said that’s now down to 40. He said there are no further restructuring plans.

The accounts point out the parent company, Option NV incurred significant losses to the end of December last and figures show the parent incurred a pre-tax loss of €61m in the 12 months following a loss of €29.8m in 2008.

Option NV is unable to provide confirmation of continued support to the company to enable it meet its working capital requirements.

However, the company spokesman said yesterday Option’s parent has just signed a deal with Huawei Technologies to share technologies which will result in a cash injection of €27m for the company that also includes an extension that could generate €33m over 18 months.

The spokesman said this gives the company liquidity and should address the concerns expressed by the auditor in the report.

Turnover decreased by 21% from €296.1m to €234.7m. The filings show the company recorded an operating loss of €1.2m compared to an operating profit of €19.4m in 2007.