Downturn prompts high-tech job losses in Limerick

Several hundred temporary jobs are to be lost and over 100 full-time positions are at risk at two of Limerick’s most established…

Several hundred temporary jobs are to be lost and over 100 full-time positions are at risk at two of Limerick’s most established high-tech employers in a bleak day for jobs in the county.

Computer manufacturer Dell, which employs 3,000 staff at its Limerick plant, said between 400 and 500 staff on short-term contracts were to be let go.

A spokeswoman said the lay-offs were part of the normal business cycle and the numbers involved were no higher than normal.

However, the move by Dell, has prompted a restructuring programme at its Shannon-based supplier Flextronics which provides logistical services for the IT sector.

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Flextronics is understood to be seeking over 100 redundancies from its 290 permanent staff. The company declined to comment on reports that jobs were at risk.

But Siptu confirmed it was in negotiations with the company in an effort to minimise the job losses.

A union spokeswoman said the company’s core business remained strong and the Shannon plant was not in jeopardy. However, she said the loss of business from Dell had prompted the need for a restructuring.

Responding to the news, Labour Limerick East TD Jan O'Sullivan said it was a "very worrying" development, causing serious concern in the Limerick area.

"It is often said that these companies have been good for Limerick, and insofar as they provide employment for thousand of workers that is true," Ms O'Sullivan said.

"But it is also the case that Limerick has also been good for these companies, supplying a well qualified, highly-skilled and committed workforce, contributing in a very significant way to company profits."

Ms O'Sullivan called on Tánaiste Mary Coughlan to sit down with the employers "and impress upon them, the nature of the economic disaster that would result from these job losses".