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Dell moves manufacturing to Poland

Fri 09 Jan 2009 9:18am GMT / 4:18am EST / 1:18am PST

PC maker to slash 60 per cent of workforce at Limerick plant in cost-cutting plans

PC manufacturer Dell is planning to cut around 1900 jobs in its Limerick, Ireland, plant - over 60 per cent of its workforce there - and move its manufacturing base to Poland over the next 12 months.

The move, part of a USD 3 billion cost-cutting drive, should see wage costs slashed, but won't do much to help the Irish economy which is still reeling over the Waterford Wedgwood collapse.

From 2010, the production of all computers for the company's EMEA customers will take place in Poland, although it has no plans to relocate its sales, marketing and support operations, based in Dublin.

"We are proud of our 18-year tenure as a major manufacturer in Ireland," said Sean Corkery, VP of operations for EMEA at Dell. "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.

"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," he added.

Dell's share price gained over 1 per cent yesterday to close out the day at USD 11.27.

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