200 jobs to go as IBM and Celestica make cuts

5 Feb 2009

IBM has called for 120 voluntary redundancies at its Dublin operations while in Galway contract electronics manufacturer Celestica has revealed that it is to cut 80 jobs as manufacturing activities continue to shift to lower cost economies.

IBM yesterday revealed it is seeking 120 voluntary redundancies at its high-end server manufacturing operation in Mulhuddart in west Dublin. This function will be moved to Singapore.

The company, known in the tech industry as ‘Big Blue’ employs 3,000 people in Dublin across a variety of roles from R&D to software, services and manufacturing.

Meanwhile Canadian contract electronics manufacturer Celestica, which employs 380 staff in Galway has revealed it is to cut 80 jobs in the coming weeks as a result of the downturn.

One of its main contracts is the production of inkjet cartridges for HP. However, in recent weeks HP revealed that it will be conducting an eight-day ‘enforced leave’ at its Dublin operations to save on costs between St Patrick’s Weekend and Easter.

In Celestica’s fourth quarter results revenues fell from US$2.2bn down to US$1.9bn.

At its peak in 2003 Celestica employed over 1,000 jobs but shut down its Swords operation that year as jobs were shifted to the Czech Republic.

In 2007 Celestica revealed that it would be creating 170 new jobs in Galway on the back of new business manufacturing low-end power supply products for devices like MP3 players and portable games and media players.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years