Dell workers in Ireland suffer a major blow after the company announced its decision to slash the workforce in the country and move its European manufacturing facilities to Poland.
About 1,900 Dell employees, which make up more than 40% of the total 4,300 workers in Ireland, will lose their job in a series of retrenchment exercises.
The layoff will start in April and is expected to end early in 2010. By then, Poland will officially be hailed as Dell’s new center in Europe.
Poland is chosen as a new European manufacturing center for its laptops and desktops due to its relatively cheaper labour and operation cost.
Dell is a key investor in Ireland and is the second largest employer in the country at the moment with contribution about 5% to the country’s growth domestic product. The move is also devastating news to many contractors and vendors which have been relying on businesses from the world’s second largest computer maker.
The remaining of the workers who are unaffected comes from the sales and marketing as well as research and development divisions.
Few months ago, Dell was rumored to be looking for buyers for its facilities in Penang, Malaysia as the company is struggling to face the sluggish economy but it later announced its commitment to stay. Its Penang manufacturing operation serves the Asian market and produces up to 95% of the company’s notebook.