Bid to lure new jobs as Dell axes 1,900 workers

The Government is to offer computer giant Dell a multi-million euro incentive package to create 750 new jobs after the company today confirmed plans to lay off 1,900 workers.

State enterprise agency IDA Ireland is to table a lucrative investment as officials scramble to ease the devastating knock-on effects of the US firm's decision to end PC making in Limerick in favour of Poland.

Business chiefs fear the cuts, enforced despite personal pleas by senior government ministers - will lead to at least a dozen firms going to the wall and put another 6,000 workers out of work in the mid-west.

Taoiseach Brian Cowen said a high-level taskforce was being set up to secure new jobs for the hundreds of affected workers.

``The Government will continue to work with Dell to identify further development opportunities which may arise as the company continues to develop the new business,'' he said.

Dell's move east deepens fears over the extent of the recession, with the banks in crisis, 800 jobs under threat at Waterford Crystal and uncertainty over the future of 700 workers at Europe's largest zinc mine in Tara, Co Meath.

Last year 40,600 people lost their jobs in Ireland, taking the unemployment rate to almost 8%.

Defence Minister Willie O'Dea suggested the IDA had been involved in talks with Dell chiefs and was lining up a bold bid to move the plant in a new direction. The plan would see the plant focusing more on high end research and support roles and possibly bringing in the new jobs, he signalled.

Government officials cautioned, however, that several other countries in Eastern Europe and Asia were competing for the contract for 750 jobs in the research end of IT and it could be 12 months before any decision is taken.

The IDA refused to comment on the proposal but insisted a number of potential investments were in the pipeline for the Limerick region.

``We are pursuing these potential investments and will do everything possible to speed up the investment decisions in Limerick's favour,'' IDA chief executive Barry O'Leary said.

Three other big employers in Limerick - Banta, Flextronics and Sercom, which rely on Dell contracts - will be hit hardest by the cuts.

Sean Corkery, vice-president of Dell operations in Europe, the Middle East and Africa who broke the news to dismayed workers at the Raheen factory, said the multinational was proud of its Irish business.

``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,'' the Dell boss said.

It is understood the PC maker is not considering any further cuts in Ireland.

The lay-offs will begin in April, with management hoping the 1,900 redundancies will be finalised by this time next year.

Dell will continue operating in Ireland with the remaining 1,100 workers at the Raheen facility involved in product development, engineering and logistics.