Further job cuts announced as IT company transfers to Asia

MORE Irish jobs have been lost to a low-cost Asian economy.

Following the transfer of 500 insurance industry jobs last week to India, a Shannon-based company, Avocent International has said 57 of its 160 workers will be let go as it transfers work to Singapore.

The job losses came with uncertainty hanging over 200 jobs at the Limerick-based Dunne hotel group.

The company, which has five hotels, is seeking High Court protection from creditors. The group suffered pre-tax losses of e11 million in 2006.

Hotels owned by the group include the Two Mile Inn and Punch’s Hotel in Limerick.

The High Court has appointed an interim examiner who has 70 days to devise a financial rescue plan during which the company will have protection from its creditors.

The company recently warned of a downturn in the tourism sector unless Ireland’s label as an expensive destination was redressed.

Avocent International meanwhile confirmed a further seven jobs would be lost at their smaller Dublin operation.

Avocent is headquartered in Huntsville, Alabama, US. A spokesman said: “The measures are part of a series of actions designed to help competitiveness and reduce the company’s cost structure. The reductions will affect certain research and development, marketing and technical support functions as well as the transfer of Asia operations from Shannon, to the company’s regional hub in Singapore.”

The company said it will enter redundancy discussions with staff.

The layoffs will commence next month and be finalised by December.

A worrying aspect, according to industry sources, is the planned relocation of research and development functions which were developed at Shannon.

Managing director at Shannon, Kieran MacSweeney, said: “It is with great regret that we had to effect these changes as we had grown organically at Shannon.

“We were extremely proud of our achievements in that regard but significant challenges have arisen that we have to adapt to. At this moment staff, whose positions are affected, are absolutely foremost in our thoughts. They have displayed exemplary levels of quality and flexibility throughout their employment and we will provide whatever support we can for them in their efforts to secure new positions.”

Avocent provides IT solutions that reduce operating costs, simplify management and increase the availability of important IT.