Skillsoft to cut up to 140 jobs

An  Irish software company yesterday announced it would seek up to 140 lay-offs at its headquarters in Dublin following a merger…

An  Irish software company yesterday announced it would seek up to 140 lay-offs at its headquarters in Dublin following a merger with a US competitor.

Skillsoft, the e-learning specialist formerly known as SmartForce, has announced 60 voluntary redundancies in the short term and expects to shed a further 60 to 80 jobs over the next several months.

The bulk of the immediate lay-offs at the Clonskeagh research and development centre will be sought among workers in its product development department. But redundancies are expected throughout the Dublin headquarters, which employs 330.

The company said job cuts were inevitable following its merger last month with Massachusetts rival Skillsoft.

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It laid off 80 workers in Dublin in early summer.

In a statement, Skillsoft said it was committed to maintaining a head office in Dublin. The company, which provides e-learning solutions to corporate clients, has seen its share price more than halve since January 2001 amid continued uncertainty in the global technology sector.

Spokeswoman Ms Annette Murphy said Skillsoft was not prepared to set a deadline for the job cuts it was seeking in the short term.

She added that the company was concentrating on agreeing redundancy terms with staff and would not comment further.

Industry commentators described yesterday's announcement as a "necessary evil" that would strengthen Skillsoft's position in the long term.

Mr Brendan Butler, director of ICT Ireland, a body for the information, communications and technology sector, said the merger, concluded last month, had left the company better placed to withstand upheavals in the IT industry.

"While any job losses are to be regretted, it had been indicated for some time that there would be lay-offs as a result of the rationalisation process. However the merger is still regarded as a positive development."

Founded in the mid-1980s as CBT Systems, Skillsoft was one of the first Irish companies to list on the Nasdaq stock exchange. At the height of the IT boom it employed more than 500 in Clonskeagh.

The lay-offs were announced at the end of another fraught week for the Republic's technology sector. On Wednesday, two telecommunications companies announced 270 redundancies.

Canadian group Nortel Networks said 200 jobs would go at its plant in Monkstown, Co Antrim, while a further 20 positions will go at its Galway operations.

And, in a further blow for Galway, Irish group Silicon & Software Systems said 50 jobs would be lost at its design facility in the city.