Workers at Dell’s Cherrywood operation in Dublin this lunchtime received the unwelcome news that 250 permanent jobs are to be axed over the next nine months.
The compulsory redundancies will primarily affect Dell’s Cherrywood operations. However, it is understood that approximately a quarter of the jobs to be cut will be at Dell’s Limerick operations.
A spokesperson for the company told siliconrepublic.com that the job losses have occurred due to “an EMEA-wide re-organisation to improve competitive advantage and long-term profitability”.
The spokesperson emphasised that no manufacturing jobs will be lost. Instead, the redundancies are expected to occur in finance, IT, sales, marketing and sales support.
The job cuts will reduce Dell’s overall Irish headcount to 4,250 from 4,500 people.
The reductions will take place on a phased basis over the next nine months.
Dell is making the job cuts despite stating growth is accelerating internationally, driven by the strongest portfolio of products and services in the company’s history.
The company stated: “However, recent statements from Michael Dell, chairman and CEO, as well as Don Carty, the company CFO, have made it clear there is more work to do on cost to restore competitiveness, so that the company can deliver long-term, profitable growth.
“All areas of the business have been evaluated and the company believes there is a US$3bn opportunity globally to drive productivity and efficiency.
“Dell is proud of its record of growth in Ireland and EMEA but recognises that maintaining its success requires the company to look critically at its operations.
“Dell Ireland regrets the impact this will have on its employees but is confident that the changes will position Dell strongly for continued future growth,” the company stated.
By John Kennedy