DHL to cut 320 staff as 55 jobs go at Cork firm

DELIVERY company DHL is to make 320 staff redundant at one of its businesses by August, while 55 workers will lose their jobs at Cork city-based Option Wireless.

DHL Express is to close seven locations and restructure operations at a further three. The delivery company said it was “repositioning its business in Ireland to adjust to the current economic environment by maximising efficiencies”.

“The proposed measures would result in the strengthening of international express services in and out of Ireland, while scaling back domestic delivery services (inter-Ireland) to a reduced number of contract delivery customers,” a spokesman said.

“As the economic downturn has deepened, like all businesses we have examined our cost base, in particular our domestic delivery model.”

It has been in operation here since 1979. The operations it wants to restructure are in Dublin, Cork and Limerick, while the seven that are to close are: Tralee, Waterford, Enniscorthy, Athlone, Sligo, Galway and Cavan.

A 30-day consultation process with staff began yesterday. The spokesman stressed the cutbacks only affected DHL Express Ireland.

“The four DHL business units in Ireland – DHL Express, DHL Freight, DHL Supply Chain and DHL Global Forwarding – are each managed as standalone businesses.”

Pat Ward of SIPTU, which represents staff at DHL Express, said he expected there would be redundancies not just in the seven locations that are closing, but also in the three being restructured.

Meanwhile, less than six months after Tánaiste and Employment Minister Mary Coughlan announced Cork wireless technology company Option Wireless was to recruit 145 additional staff, it has now been revealed it is to make 55 of its 270 workers redundant from mid-June.

The company, based at the Kilbarry Industrial Estate in Cork city, makes devices such as USB modems.

It blamed reduced demand for its decision.