50 jobs lost in software firm closure

29 Jun 2004

Up to 50 jobs are to be affected by the closure of the Limerick software development facility of Cognizant Technology Solutions Corporation. The jobs, it is understood, will be moved to India and the US. The company blamed the closure on the appreciation of 35pc in the value of the euro against the US dollar since the facility was acquired in 2002.

The facility provides software development and maintenance services to Cognizant’s clients in North America. The company blamed the appreciation of the euro against the dollar for increasing the costs of the operation for its decision to close the operation down over the course of the next year.

The company said that all work efforts will be transferred from the Limerick facility to Cognizant’s operations in India and the US. It promised to provide severance packages and outplacement services to the 50 employees.

“We are disappointed that circumstances, in particular euro appreciation, have forced this action. Cognizant, nonetheless, remains committed to expanding its delivery capabilities in regions of the world that offer superior and plentiful talent at a competitive cost to serve our clients throughout North America, Europe and Asia,” said Francisco D’Souza, Cognizant’s chief operating officer.

By John Kennedy