Beleaguered Dell cuts 1,900 jobs in Limerick; to cease box assembly in Ireland
Thursday, January 08, 2009 - 09:06 AM EDT "Computer multi-national Dell has announced that it is cutting 1,900 jobs at its plant in Limerick over the next 12 months," RTÉ News reports. "The company says it expects the reduction to be complete by January next year with workers beginning to leave the plant in April.""Recently Dell has been Ireland's second-biggest employer," RTÉ News reports. "Its products make up at least 5.5% of Irish exports and 2% of gross domestic product - the the total value of all goods and services produced within the economy."
"Economists have warned that each job at Dell underpins another four or five Irish jobs," RTÉ News reports. "It is estimated that another 10,000 jobs in sub-supply companies rely on Dell business."
"Dell will move all production of computer systems for customers in Europe, the Middle East and Africa from Limerick to its Polish facility and third-party manufacturers over the next year," RTÉ News reports.
"The company said affected workers will receive competitive severance package and career outplacement assistance as they leave from the company," RTÉ News reports.
Full article here.
MacDailyNews Take: It's never funny when people lose their jobs as the result of incompetent management and/or a flawed business model. In Dell's race to completely eliminate profit margins from their shoddy products, have they ever stopped a second to think what happens after outsource everything to the cheapest assemblers? Where are they going to find cheaper labor? Mars? Dell's business model is flawed because it has a finite end (at some point, there's nothing left to cut) and because competitors make vastly superior products for which discerning people, in ever-increasing numbers, are willing to pay extra. Dell can slap paint on all the laptop lids they stamp out, but that won't camouflage the fact that they have nothing unique to sell. Dell is stuck trying to squeeze blood from a stone. You can't make it up in volume, Mikey. SIDAGTMBTTS.



Always sad to see people lose their jobs, but at least it will give them more time for Guinness.