Dell Moves Irish Manufacturing Opers To Poland, With 1,900 Job Losses

U.S. computer and information technology company Dell Inc. (DELL) Thursday said it is moving its Irish manufacturing operations to Poland by early 2010, with the loss of 1,900 Irish jobs.

The company, which established its manufacturing facilities for Europe, Middle East and Africa in Ireland in 1990, said the move is part of a $3 billion companywide cost-reduction initiative revealed last year.

Dell said 1,300 sales and marketing jobs will remain in Dublin, as will 1,000 Limerick-based jobs in logistics, solutions, procurement, engineering and product development. "Limerick will remain the logistics hub for Europe," a spokeswoman told Dow Jones Newswires.

Sean Corkery, vice president of EMEA operations, said in a statement: "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."

Ireland provides an attractive 12.5% corporate tax rate for multinationals based in the country, but Dell said the transfer of operations aims to simplify operations, improve productivity and reduce costs.

Economists say the move is another sign that the Irish economy, fueled by the twin engines of a construction boom and multinational investment since the 1990s, is losing its edge to cheaper Eastern European countries.

Alan McQuaid, economist at Bloxham Stockbrokers, said the level of job cuts is disappointing. "If you're starting to lose jobs in multinationals it doesn't auger well for the economy as a whole," he said. "This is a warning that we need to remain competitive."
Source:By Quentin Fottrell, Dow Jones Newswires
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