Computer giant Dell is expected to announce job cuts among its 4,500-strong Irish workforce.
The company has confirmed it will seek a 10 per cent cut in its global workforce, but it is as yet unclear how many jobs will be shed here.
The news comes as economic data released today also hints at a weakening Irish economy.
Some estimates suggest that around 450 jobs in Ireland will be shed over the next 12 months as Dell cuts around 8,800 jobs worldwide in a bid to improve competitiveness.
The firm employs 3,000 staff in Limerick and 1,500 in Cherrywood, south Co Dublin, and, as Ireland's largest exporter, is responsible for 4 per cent of all expenditure in the Irish economy.
The announcement comes as NCB Purchasing Managers' Index (PMI) figures released today show a fall in Irish manufacturing, while Allied Irish Bank has warned of an employment slowdown on the heel of slowing construction and a labour market squeeze.
Dell, which has a global workforce of 88,100 full time and part-time employees, is struggling to regain market share after Hewlett-Packard (HP) ousted it from the top spot in worldwide computer shipments last year. Its share price has fallen sharply over the past two years.
Dell chairman and chief executive Michael Dell said last night that the company would reduce staff by around 10 per cent over the next year. "While reductions in headcount are always difficult for a company, we know these actions are critical to our ability to deliver unprecedented value to our customers now and in the future."
It is still unclear how many jobs will be cut in Ireland, but the cuts would vary across regions, the company said. "[Redundancies] will reflect business considerations as well as local legal requirements", the company said.
The jobs announcement came after Dell announced a slight dip in earnings over the same period.
Earlier this year, mobile phone manufacturer Motorola announced plans to cut 300 jobs at its Cork plant. The company will shed more than 8,000 jobs worldwide as part of the restructuring.
AIB has forecast labour force growth to slow from 3.5 per cent this year to 2.5 per cent in 2008.
In its latest labour force assessment, the bank predicts the pace of employment in the building industry will slow due to a peak in housing supply and a drop in workers entering the labour force.
PMI figures out today also showed slowing Irish manufacturing activity, with the index falling to 51.9 in May from 53.3 in April.
Export orders also fell below the important 50.0 mark, falling to 47.9 and 46.7 respectively from 50.7 and 48.6.
Fine Gael has described the potential job cuts as a massive blow to both workers and their families.
"We have managed to sustain dramatic growth in the Irish economy by attracting foreign investment and keeping it here over the last 15 years," south Dublin TD Sean Barrett said.
"Ireland's future economic success depends heavily on reassuring the multinational sector and its employees that we have a competitive cost base for the future.
"Maintaining our competition is a key challenge for any incoming government. This is an area that the outgoing government have let slide," he said.
"Unfortunately, concerns over the future of the Dell facility reflect the perilous condition of industry in this state as a result of Government-driven price increases."
Enterprise Minister Micheál Martin said the Government would be working closely with the computer giant and the Industrial Development Agency. He added it was hoped the Irish workforce would continue to have a significant impact on Dell globally.
AP and staff reporter