Loss of 120 jobs a body blow, says TD

IBM REDUNDANCIES:IBM IS to close part of its server operation with the loss of 120 jobs at its technology campus in Mulhuddart, Co Dublin.

The jobs are to go as a result of the decision by IBM to move its high-end server manufacturing operation to Singapore, a move which will be completed by 2010.

The high-end servers are mainframe computers for large companies such as banks, insurance companies and multinational manufacturers and each is built to order at an average cost of several million euro.

In recent years IBM has said that “tens of thousands” of what are known as zSeries servers are shipped around the world every year from the Mulhuddart plant.

This suggests that yesterday’s development will cost hundreds of millions of euro in lost exports, though the company says the software for such machines will continue to be developed in Ireland.

IBM spokesman Jim O’Keeffe said the move to Singapore puts the company closer to growing markets in Asia and made sense as most of the initial components come from the region in the first place.

“The demand for the high-end servers is likely to be greatest in the Asian continent over the coming years. As a globally integrated organisation, we have to move where our market is. It is more strategic for our manufacturing operation,” he said.

The company is looking for 120 voluntary redundancies from its server manufacturing area, which includes high-end and low-end server manufacturing. The jobs are expected to go by April.

IBM declined to say how many people work in the server area, but the campus employs 2,000 people in manufacturing, software development and services at its Mulhuddart campus.

In total IBM employs 3,700 people in Ireland.

Workers will be offered redundancy or redeployment in the company and IBM will continue to manufacture low-end power-based systems for Europe, Africa and Asia at its Mulhuddart facility.

Mr O’Keeffe said the redundancies must be seen in the context of job announcements over the last three years where the campus has shifted from major manufacturing to expanded employment in software development.

Last year IBM announced a €30 million investment in its next generation data centre, which will deliver software to clients in 84 countries, including those who buy the zSeries computers.

“The skill set for Ireland is very much in research and development now from an IBM perspective. The campus was built to take that flexibility,” he said.

“Dublin remains a critical location for a number of IBM global strategies, as well as our efforts across Europe, Asia and Africa. Along with its server manufacturing mission, Dublin over the years has been evolving as a software and services site.”

Local Labour TD Joan Burton described the redundancy announcement as a “body blow” for the area.

“While IBM have announced that these redundancies will be voluntary, it would be a brave soul who took voluntary redundancy at this point in time.

“There is as yet no indication of what the terms of the redundancy will be or if the redundancies could become compulsory,” Ms Burton said.