Dell announced on Thursday that it is closing its manufacturing operation in Limerick, Ireland, and shifting production to its Polish plant and to third-party contractors.
The move will result in the loss of 1,900 jobs in a facility that employs 3,000 people. Employees and unions in Ireland have long been expecting the decision, which is part of a $3bn restructuring that Dell announced last year.
Dell said in a statement that the first Limerick employees would leave the company in April and the whole process of switching production will be completed by January 2010. Workers will receive a competitive severance package and career outplacement assistance from the company, the company added.
Dell has had a facility in Ireland for 18 years, where it has become a major force in manufacturing and the largest employer in the Limerick area. Commenting on the move Sean Corkery, vice president of operations, Dell Europe Middle East and Africa 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."
According to Dell, the company's remaining employees in Ireland "will continue to co-ordinate EMEA manufacturing, logistics and supply-chain activities across a range of functions including product development, engineering, procurement and logistics". Dell will keep its Global Innovation Solutions Center and European Command Center in Limerick.
Talkback
Sadly this is only the tip of the iceberg. Where I live in <a href="http://www.myvancouverhomepage.com/">Vancouver</a> (ok my site and a shameless plug) we are very tech central with EA's main office as well as Microsoft. We have a good tech industry but as like everyone else, it's taking on water. EA has closed a couple of smaller studios they own in Vancouver. Many tech firms are downsizing with layoffs. It's going to be a tough go over the next couple of years for sure. My occupation is safe, but a lot of people are expecting the worst.