Dell to cut 1,900 jobs in Limerick

kippy

Raskolnikov wrote: »

Even if they were able to assemble twice as many PC's are the Polish outfit, we're still five times the cost of Poland.

Ireland is simply too expensive a place to manufacture in.

We are now, but costs in Poland will rise with time as well......
If we are to continue with manufacturing jobs it is with Irish companies they need to be with.

Amazotheamazing

kippy wrote: »

We are now, but costs in Poland will rise with time as well......
If we are to continue with manufacturing jobs it is with Irish companies they need to be with.

When costs rise in Poland they'll just move on again.

We're already way behind other EU countries on R&D.

Berty

Good old John Gilligan again speaking without thinking.

"Dell have unceremoniously SACKED all those good people"

Listening to him he is unable to see this as a business profit making decision by the Dell Corporation.

Oafley Jones

Amazotheamazing wrote: »

When costs rise in Poland they'll just move on again.

We're already way behind other EU countries on R&D.

To be honest, I'm surprised they're retaining any manufacturing in Europe. It's probably due to distribution logistics but when you see Hon Hai/Foxconn relocating plants within different regions of China due to differing costs in the country, you know that manufacturing in Europe is in it's final days.

Jumpy

Berty wrote: »

Good old John Gilligan again speaking without thinking.

"Dell have unceremoniously SACKED all those good people"

Listening to him he is unable to see this as a business profit making decision by the Dell Corporation.

He is speaking to the people, its what they want to hear.

Itsdacraic

How long until the Government announce a "taskforce" has been set up?

death1234567

Berty wrote: »

At least when Wang left people went to AST and when AST when they went to Dell. Where will that skillset move to now?

The dole. Its the 1980's all over again.

Tipsy Mac

death1234567 wrote: »

The dole. Its the 1980's all over again.

Yes but this time it's worse in the 80's you had the US and UK to go to.

Millie

It's terrible news for all & as a subcontractor our future is now also hanging on the balance.
It's a dark, dark day for Limerick.

death1234567

Tipsy Mac wrote: »

Yes but this time it's worse in the 80's you had the US and UK to go to.

True, and you had an epic mullet to keep your neck warm.

Raskolnikov

Is this really as bad as people make it out to be though? I mean, something always comes up, doesn't it?

Keano

I'd feel for all those people. Fortunately I was made redundant last year but got a job. Going to be a long year for Ireland...

death1234567

Raskolnikov wrote: »

Is this really as bad as people make it out to be though?

Yes it is. 800 jobs are being lost a week. If you lose your job now and can find another vacancy that you are qualified you'll probably find over 100 other applicants for the same position (minimum).

iMax

The government should have stepped in & given them tax breaks. If they let them stay here tax free it would have cost far less than the social welfare in the area is going to cost. Not to mention they'd still have income tax, VAT etc from the employees. Now they've nothing.

iMax

Raskolnikov wrote: »

Is this really as bad as people make it out to be though? I mean, something always comes up, doesn't it?

You've never been made redundant have you ?

Imagine applying for a job. Now imagine applying for one with a couple of hundred of people who have exactly the same skillset as you.

lb163

I agree Death12345, I am in a position like that and I do not know how many applications I have sent away over the past 8 months and all i got to date was 2 interviews but no job The fact that i am 56 is no help of course. No idea of what i can do now

Mollywolly

Raskolnikov wrote: »

Is this really as bad as people make it out to be though? I mean, something always comes up, doesn't it?

I'm afraid it is. It's more the knock-on effect, if anything. There will be a lot less money going into the local economy so that puts pressure on local businesses, they make job cuts, etc., and so it goes on.

Oh, and forgive me if I'm sounding a bit gloomy but my hubby is one of those who has lost his job. Thankfully, he will be one of the last to go at the end of this year but it's still bad news whichever way you look at it.

--amadeus--

About 18 months ago my wife advertised for an office based job, ended up having to go through an agency and had barely a dozen applicants.

A couple of months ago that job had to be re-advertised, went in the local paper and she had close to 200 applicants.

Make no mistake this will have a huge impact on the local economy. Not only are you losing 1900 (comparatively) well paid jobs there will be (as mentioned) knock on's with the companies who supply Dell. And then you have the impact on - for example - retail and leisure. There are now close on 2,000 who won't have a pay packet to put over the counter so the ramifications are huge.

The only positive is that the really high skill and well paid jobs are being retained (at least for now)

Berty

iMax wrote: »

The government should have stepped in & given them tax breaks. If they let them stay here tax free it would have cost far less than the social welfare in the area is going to cost. Not to mention they'd still have income tax, VAT etc from the employees. Now they've nothing.

It sounds nice if they could do that then every other employer would claim to be moving to Eastern Europe and ask for tax breaks as well.

The IDA originally gave 10 year breaks for these companies to entice them to Ireland but the tax incentives had to expire at some stage.

Ireland has a low labour cost and highly educated citizens but over the year of the tiger our wages went up and up and now we are as expensive as the original countries they transferred from.

Eastern Europe will go that way as well.

whiskeyman

Raskolnikov wrote: »

I mean, something always comes up, doesn't it?

The only thing going up is the unemployment rate, Government debt and peoples sense of despair.

We had years of highs we never thought imaginable fuelled on crazy excess and greed.


Here come the lows.

grahamo

I hope it goes tits up for Dell. They are destroying a whole community and all they can think about is their profit margin.

BobTheBeat

What Im getting from this, is the fact that no government body seems to really have planned ahead for this. Why was it only 2-3 weeks ago, Mary Coughlan and Brian Lenihan went on a mission to Dell in Texas shaking the poor bowl, saying "please Lads,dont leave,is there anything we can do?". This has been on the cards for a long long time. Their efforts would have been put to better use in investing in local industry and local people, capitalising on the skills that the foreign companies introduced and honed over the years.

Berty

grahamo wrote: »

I hope it goes tits up for Dell. They are destroying a whole community and all they can think about is their profit margin.

Do you think its fair that Dell should lose money instead of making money? Business is business in the end.

whiskeyman

grahamo wrote: »

I hope it goes tits up for Dell. They are destroying a whole community and all they can think about is their profit margin.

Cop on.
They're a business!! That's what they should be thinking about.
It's focusing on why they're pulling out thats the issue. Do you work for the Government? I'm sure you'd love the public to vent their anger at a faceless multinational and the Governments shambolic policies, greed and corruption that got us into this mess! :mad:

BobTheBeat

whiskeyman wrote: »

Cop on.
They're a business!! That's what they should be thinking about.
It's focusing on why they're pulling out thats the issue. Do you work for the Government? I'm sure you'd love the public to vent their anger at a faceless multinational and the Governments shambolic policies, greed and corruption that got us into this mess! :mad:

Agree..

Grahambo, direct your anger at your local politician. Its them that allowed this to develop into a disaster that came out of nowhere.

Raskolnikov

iMax wrote: »

You've never been made redundant have you ?

Imagine applying for a job. Now imagine applying for one with a couple of hundred of people who have exactly the same skillset as you.

I'm pesimistic, but am trying to see can there be any upside to this.

Is there any chance that another manufacturer could take advantage of the Dell operation? I imagine the permises can be bought for a song, and there'll be an awful lot of desperate people looking for work.

lfc1892

someone said earlier that in the 80s you could go to America or England but now there is no point.

Of course there is a point, they'll bounce back fairly quickly because they don't have incompetent, greedy and sometimes corrupt governments that have lost touch with reality.

Dell shedding 1900 jobs will be a huge blow to the economy. I work in retail and I believe we are feeling it already because of the uncertainty (even though our targets keep going up!)

Lets not forget about the factories in Raheen that are directly dependent on manufacturing in Dell, their management are probably having frantic meetings as we speak. Their overseas owners will want to cut their losses as soon as possible rather than flog a dead horse.

It is unbelievable that we allowed Limerick to become so dependent on One company. Cork in the 70s did the same with Ford and Dunlop and when they closed the effect was absolutely devastating, if it hadn't been for Irish Steel they'd have had nothing.

Raskolnikov

grahamo wrote: »

I hope it goes tits up for Dell. They are destroying a whole community and all they can think about is their profit margin.

They still employ 2,000 or so people here . . .

lfc1892

Raskolnikov wrote: »

They still employ 2,000 or so people here . . .

for now, believe me they'll start scaling that back too

BobTheBeat

Raskolnikov wrote: »

I'm pesimistic, but am trying to see can there be any upside to this.

Is there any chance that another manufacturer could take advantage of the Dell operation? I imagine the permises can be bought for a song, and there'll be an awful lot of desperate people looking for work.

But what manufacturing operation (in light of the current economic situation) can afford to support the cost of manufacturing in a country where the expense of doing business is moving up, year upon year and still manage to turn a profit?