Dell to axe 1,900 jobs

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

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

Dell said the move was part of a $3bn (€2.2bn) global cost-cutting drive announced last year.

The lay-offs will begin in April and will be completed by January of next year.

Dell says affected employees will receive severance packages and assistance in finding new jobs.

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 Tánaiste Mary Coughlan and Defence Minister and Limerick TD Willie O'Dea during a trade mission in Texas last 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 €140m the mid-west economy in wages alone.