Jabil Global Services, a post-manufacturing subsidiary for electronic manufacturing company Jabil Circuit, is to close with the loss of 75 jobs.
The closure of the company, based in Clonshaugh, north Dublin, was announced to staff at a meeting yesterday morning.
The company blamed current business conditions for the closure and added that the Dublin plant's "current cost structure does not meet market requirements". A spokesperson for the company has said it is "too early to say when the proposed closure will take place", and was unable to give details of any redundancy package staff might be offered.
"The details will have to be decided, we will now enter into formal discussions regarding this proposal," said the spokesperson.
Jabil Circuit employs more than 60,000 staff at 45 facilities across Asia, Europe and the Americas. Newly filed accounts for Jabil Global Services show that the company made pretax profits of €750,131 in the year to August 2005. This was more than double the pretax profit of €342,683 in the previous year.
However, turnover declined by more than €15 million in the same period, to €16.22 million from €31.91 million. Jabil Global Services incurred once-off costs of €424,862 for redundancies last year and once-off costs of €1.16 million for redundancies in the previous year, the accounts show.
Meanwhile, on the day staff at DHL Exel Supply Chain were due to be informed of the loss of a lucrative contract with Tesco, and the resulting closure of a plant at Ballymount, Tallaght, the company issued a statement apologising for inadvertently communicating the news by way of a stray e-mail.
It was reported in the Tallaght Echo yesterday that staff at the logistics company discovered their jobs were under threat last week when an e-mail was accidentally sent to all e-mail addresses at the company.
DHL Exel Supply Chain yesterday evening issued a statement expressing its "regret" at the manner in which the information was communicated to staff, apologising to those affected. Staff were officially informed of the decision, due to be made yesterday, late last week.
There are 103 permanent staff and 105 agency staff employed at the Ballymount site, a distribution centre dedicated to Tesco, which is expected to close in September. The company's multi-user site at Oak Road will cease its operations for Tesco in July of 2007, and there are fears that, if a new contract is not secured before then, there will be redundancies among the 81 permanent and 62 agency staff employed.