Dell and Lenovo restructure

Computer maker Dell has announced that it is to shift its European manufacturing base from Ireland to Poland.

As a result almost two thirds of the 3,000 jobs at its Limerick plant will go.

Dell, which is Ireland’s largest exporter, largest technology company and second-largest company overall, believes it has no choice.

Sean Corkery, vice-president of operations in Europe, Middle East and Africa, said: “I think it had to be done, I think we have to remain cost competitive, it’s a very difficult market out there, as part of our restructuring programme to be more cost competitive, we need to be a price leader in the market and for that we need to have the right costs, and it’s in that context that we had to make this decision.”

Dell, with 15.6 percent of world market share is struggling to catch up to larger rival Hewlett-Packard which has 18.1 percent.

China’s Lenovo – which makes half as many sales as Dell – has also just announced job cuts.

It will lay off 2,500 people, that is 11 percent of its work force and cut executive’s pay.

It said China’s slowing economy and falling demand for computers mean it expects to make a loss for its latest quarter.

Lenovo shares plunged in response.

Copyright © 2009 euronews

tags: Corporate, Ireland, Poland