Dell to cease all production at Limerick plant - 1,900 jobs to be lost

“The entire city is devastated by the loss of these jobs” - Mayor

Computer manufacturer Dell has confirmed that 1,900 jobs are to be lost at the Raheen plant in Limerick.

Managers at Raheen told its employees at this morning meetings that 1,900 of them would lose their jobs between April 2009 and January 2010.

Limerick Mayor John Gilligan told local radio this morning following the announcement that 5,000 to 6,000 people are facing the dole following this news,

“I regret the way Dell treated Limerick this morning, this is huge”, he said

Complete Dell Statement

Dell will migrate all production of computer systems for customers in Europe, the Middle East and Africa (EMEA) from Limerick to its Polish facility and third-party manufacturing partners over the next year.

The manufacturing migration will be completed in a phased transition during 2009 and is among a series of steps Dell is taking to simplify operations, improve productivity, reduce costs and deliver even higher levels of customer satisfaction. The move is part of a $3 billion cost-reduction initiative the company announced last year and is being made as a result of an ongoing comprehensive review of Dell’s global supply chain.

“We are proud of our 18-year tenure as a major manufacturer in Ireland,” said Sean Corkery, vice president of operations, EMEA. “This is a difficult decision, but the right one for Dell to become even more competitive, and deliver greater value to customers in the region.”

Dell expects to reduce its Limerick manufacturing workforce by about 1,900 employees over the next 12 months. The initial release of employees will occur in April, with the full transition expected to be completed by January 2010. Affected workers will receive a competitive severance package and career outplacement assistance as they transition from the company.

“We will treat affected employees with dignity and respect and offer them every practical support through this extended transition period to minimize the impact on them,” said Mr. Corkery. “We appreciate the support from the Irish government and the people of Limerick over these many years.”

Dell’s employees in Limerick will continue to coordinate EMEA manufacturing, logistics and supply chain activities across a range of functions including product development, engineering, procurement and logistics. The company’s Global Innovation Solutions Center and EMEA Command Center will remain in Limerick. Dell continues its significant sales, marketing and support activities in Cherrywood, Dublin.

Statement from Limerick Mayor John Gilligan:

“I really sympathise with them today, Dell employees in Raheen were exemplary and a credit to their employer and to Limerick City, There was never any industrial action and their productivity levels were world class.

In very many cases given the type of shift work that the workers did, their job took precedence over everything including family life. The entire city is devastated by the loss of these jobs and what this means for the greater Mid West region.

The attitude which the company displayed to its workers, with many having to hear details of potential job losses through the media and the rumour mill was unfair.

When plans for re-structuring were taking place, Dell should have spoken to the Government and local people to see what could be done.

It seems that the decision was made first and after that, it was only a question of when the bad news would be delivered.”