Computer giant Dell confirmed today that it is to axe 1,900 jobs at its flagship manufacturing plant at Raheen in Limerick.
In what has been described as a devastating blow for the region, the company will cease production at its Limerick factory in favour of its newer facility and considerably cheaper labour market in Poland.
The closure was part of a $3bn global cost-cutting program that was announced by the company in Q4 of 2008.
The redundancies will begin in April and will be pahsed until January of 2010. No details of severance packages were discussed but the company said it would provide assistance to affected employees in finding alternative jobs.
Estimates vary of the knock-on effect on ancilliary industries but the concensus puts it between 8,000 and 12,000 other jobs that will be impacted.
Sean Corkery, vice-president of Dell operations in EMEA (Europe, Middle East, 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 will continue non-manufacturing operations in Ireland with 1,100 workers reamining at the Raheen facility focused on supporting overseas manufacturing through product development, engineering and logistics and 1,300 marketing and sales staff at Dell’s Cherrywood plant in south Dublin.
The computer maker will remain one of Ireland’s largest employers.