The much-feared announcement that computer manufacturer Dell is moving production from Limerick to Poland has come to pass, which will result in about 1,900 jobs being axed.
All production of computer systems for customers in Europe, the Middle East and Africa will migrate from Limerick to Dell’s Polish facility and third-party manufacturing partners over the next year.
The initial release of employees will happen in April, with the full transition expected to be completed by January 2010. About 1,000 non-manufacturing staff will be retained in Limerick.
The decision is part of a €3bn cost-reduction initiative Dell announced last year, and is being made as a result of an ongoing comprehensive review of Dell’s global supply chain. It aims to simplify operations, improve productivity, reduce costs and deliver higher levels of customer satisfaction.
“We are proud of our 18-year tenure as a major manufacturer in Ireland,” said Sean Corkery, vice-president of operations, EMEA. “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.
“We will treat affected employees with dignity and respect, and offer them every practical support through this extended transition period to minimise the impact on them.”
The remaining employees in Limerick will continue to coordinate EMEA manufacturing, logistics and supply-chain activities across a range of functions, including product development, engineering, procurement and logistics. The company’s Global Innovation Solutions Centre and EMEA Command Centre will remain in Limerick. Dell is also continuing its sales, marketing and support activities in Cherrywood, Dublin.
By Sorcha Corcoran
Pictured: Dell’s manufacturing operations in Limerick