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Realistbear

Highly Symbolic Blow Dealt To Irish Tiger

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http://www.rte.ie/business/2007/0601/dell.html

Big Dell job cuts will hit Ireland
Friday, 1 June 2007 07:40
The computer manufacturer, Dell, is expected to
cut its Irish workforce by up to 450
over the coming 12 months as part of a global drive to cut costs.
Last night, the company announced that it is to shed 8,800 jobs worldwide, amounting to about 10% of its global workforce.
In a statement, the company's chief executive Michael Dell said the redundancies would be across all regions and departments.
But the company stressed that no final decision had been made on the number of job losses in Ireland.
The company employs 4,500 in Ireland - 3,000 in Limerick and 1,500 in Cherrywood in South County Dublin.

Just as the market begins to succumb to Great Crash 2--not good news for those who bought into the Irish miracle.

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Hard to have cheap labour in a country with insane house prices.

Ireland now has the 4th highest GDP per capita in the world, while the UK languishes in 12th (although the only large countries above the UK are the US and Japan).

At one point, you could not obtain unemployment benefit in Limerick without evidence of being unable to obtain work at Dell.

Ireland's success has been built on low company tax, cheap labour and the English language. Now the cost of labour is threatening to remove the tax advantages of Ireland. A number of investment banks have back office cost centres in Ireland. The tax advantages are minimal, and the labour costs are high. It would be far cheaper to move them to Asia or UK regional cities that leave them there.

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I read it was cos their earnings went from 762m to 759m in the quarter so they decided to hack out 10% of their workforce. Growth must continue at ever increasing rates, nothing else is acceptable! And people wonder why our society and environment is fecked. :angry:

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I read it was cos their earnings went from 762m to 759m in the quarter so they decided to hack out 10% of their workforce.

Sure, but when you cut workforce, a sensible company cuts the least productive relative to cost.

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Well they could have done that already. How come it takes a 3m (sub 0.5%) drop in earnings for them to suddenly go "Oh l just remembered a load of people that actually we didnt need to employ, and l've no idea why we didnt do it sooner". I call BS, this is simply western presence asset stripping for a short term share price spike. Feck the long term, other than the long view ideal of getting all dell workers to work for food only...(managers get basic shelter too)

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I used to work for a company with a manufactoring presence in the ROI (back in the early 1990's.) Those guys used to work all hours for a fraction of what we made in the UK. That's why we did the drongo work over there. I assume Michael Dell did the same calculations.

The same fundamentals don't apply anymore. Only inertia keeps manufactoring over there now. (I say manufacturing, it's basically putting stuff in cardboard boxes - they don't design chips or the like.)

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