Irish software developer Iona Technologies cut 15 per cent of its global workforce last night as further uncertainty hit the domestic technology sector.
The news came as Fine Gael leader Mr Michael Noonan warned that up to 10,000 jobs could be lost in the technology sector in Ireland over the coming months. There is also the possibility of job cuts within cable telecommunications group NTL and computer manufacturer Dell, both of whom have major operations in the State.
An Iona spokeswoman confirmed 30 people were laid off last night at Iona's Dublin office and a further 145 staff would be made redundant from the firm's overseas operations.
The job cuts were a result of duplication in certain positions following a string of acquisitions over the past year and were not a response to the downturn in technology stocks, the spokeswoman said. Iona employs some 860 people and is close to acquiring the Californian business-to-business software group Netfish Technologies which employs 270 people.
Addressing a US Chamber of Commerce lunch in Dublin, Mr Noonan said it would be foolish to think the Republic could avoid the trend experienced in the US. "We're in the front line. We're more dependent on the US than any other European country," he said. It was imperative that the Republic did its utmost to ensure it remained a competitive location for technology activities, he added.
And following in Iona's footsteps, NTL is poised to announce a major round of job cuts next week following a major company-wide review of its British and Irish operations. An NTL Ireland spokeswoman declined to comment.
Meanwhile, a senior executive at Dell Computers, which employs almost 6,000 people in Limerick, Dublin and Bray, warned that the firm would continue to be ruthless in managing costs and this would include job cuts. It is not known how this would impact on Ireland.
Earlier this week, Dell declined to comment on growing speculation that it was planning a new round of layoffs. It cut 1,700 jobs, or 4 per cent of its workforce, last February.
