Dell to seek 150 redundancies in Limerick

Dell has announced it is to cut 150 jobs at its Limerick plant.

Dell has announced it is to cut 150 jobs at its Limerick plant.

In a statement issued this morning, the company said it is seeking 150 voluntary redundancies from its permanent administrative and management workforce at the plant.

According to the company, the voluntary severance programme will apply to all administrative departments and organisational levels at Dell's Limerick operations. However, it is not expected manufacturing staff will be affected by the cuts.

Employees participating in the programme will be offered in over six weeks' pay per year of service, extended medical and life cover, plus extensive career advice and outplacement help.

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Over the past year, manufacturing for Dell's EMEA marketplace has been consolidated at the company's facility in Raheen, Co Limerick, which opened in February 2000. This move led to the duplication of some administrative and management, and it is these jobs that are to be cut.

Last year, Dell invested over $20 million in upgrading the custom-built site, which is already recognised as Dell's most cost-efficient manufacturing operation worldwide. The company plans to invest a similar amount this year. Dell's manufacturing capacity remains unchanged as a result of today's decision, and jobs at Dell's sales and support centres in Bray, Co Wicklow, and Cherrywood, Co Dublin, are unaffected.

Dell has met or exceeded its guidance to investors regarding operating performance for five consecutive quarters and expects to achieve year-over-year growth in revenue in the second quarter. The company employs 4,500 in Ireland.

It is estimated that Dell contributes to at least 5.5 per cent of Irish exports, 2 per cent of GDP and over 4 per cent of all expenditure in the Irish economy. Telecommunications company Ericsson is seeking another 150 redundancies in Ireland.

Telecommunications company Ericsson told its workforce in Athlone this morning that an additional 150 voluntary redundancies were needed from the company's two plants in Ireland, at Clonskeagh in Dublin, and Athlone in Co Westmeath.