Dell culls 1,900 Irish jobs while turning to cheap Polish labour

by Stevie Smith - Jan 8 2009, 09:31

With rumours still circulating that Microsoft Corp. may be on the brink of jettisoning thousands of jobs from its global workforce, computer manufacturer Dell Inc. has become the latest industry heavyweight to crack beneath mounting economic pressures.

Specifically, recent rumours suggesting the onset of significant job losses at Dell have now panned out after the Texas-based giant confirmed that 1,900 employees at its long-serving facility in the west of Ireland are to be cut free as the company strives to reduce its costs.

The production line in Limerick, which has been an integral cog in the well-oiled Dell machine for almost 20 years, is now to be closed in favour of a cheaper facility and workforce that will be based in Lodz, Poland.

The job cuts in Ireland, equating to some two-thirds of the facility’s entire allocation of staff, will mainly hit ordinary shop-floor workers, while support teams, finance and logistics specialists, and senior management figures will likely retain their positions.

According to a report published earlier in the week by The Irish Times, the job cuts at Dell could have a sizeable impact outside of the company’s own employees. Moreover, the report suggests up to 15,000 other jobs could be affected through severed third-party and temporary contracts.

Dell, the world’s second biggest PC manufacturer, has said its new production facility in Poland will take on the Limerick line’s responsibility of serving customers based in Europe, the Middle East and Africa.

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