22/10/2010

IBM Announces Job Losses

Computer giant IBM has announced 190 server manufacturing jobs are to go at its facility in Mulhuddart, Co Dublin.

It is believed the jobs are being transferred to mainline China, in a move that has been described as "devastating news" by the Fine Gael spokesman, Leo Varadkar.

The relocation is part of IBM's ongoing "transformation at its technology campus", but a spokesman has claimed the company will work to re-employ some of the 190 workers in Mulhuddart in other roles within IBM.

The company currently employs around 3,000 people in Ireland.

Speaking this morning, Leo Varadkar said that alongside the pain these job losses will cause, IBM's announcement heralds the end of hardware manufacturing in the area.

"Ireland should be attracting jobs in these blue-chip, high tech companies but instead workers are seeing them shipped abroad to countries such as India and China.

"This does not bode well for Fianna Fáil and the Greens attempt to build the 'smart economy'. There is a way out of the mire in which Ireland finds itself but a proper stimulus package needs to be introduced without delay.”

Mr Varadkar added that there was no doubt IBM had already benefited from low tax rates and government grants over the years. He said there was a responsibility on the firm to give departing staff a generous redundancy package of at least six to nine weeks per year of service.

In a statement this afternoon, IBM said it "remains committed to its Irish operations with continued presence, not only at the IBM Technology Campus in Mulhuddart, but also across a broad range of businesses and locations in Dublin, Cork and Galway."

(DW)

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