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HOME REGIONS EMEA › Dell pulls plug on Irish PC production

Dell pulls plug on Irish PC production

by Stuart Wilson, Thursday 8 January 2009

Hardware giant Dell has confirmed that it will migrate all production of computer systems for EMEA customers to its Polish assembly facility and third party manufacturing partners during the next year. The move means an end to PC production at Limerick, Ireland, with the loss of some 1,900 jobs.

“We are proud of our 18-year tenure as a major manufacturer in Ireland,” said Sean Corkery, VP 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.”

The switch to Poland and third party partners will be completed in a phased transition during 2009 and is part of a series of steps Dell is taking to simplify operations, improve productivity and reduce costs. The move forms part of a US$3 billion cost-cutting initiative that Dell announced last year.

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 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 Corkery. “We appreciate the support from the Irish government and the people of Limerick over these many years.”

Dell’s team 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 centre and EMEA command centre will remain in Limerick. Dell also has significant sales, marketing and support activities in Cherrywood, Dublin.

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