Dell will migrate all production of computer systems for customers in Europe, the Middle East and Africa (EMEA) from Limerick to its Polish facility and third-party manufacturing partners over the next year.
The manufacturing migration will be completed in a phased transition during 2009 and is among a series of steps Dell is taking to simplify operations, improve productivity, reduce costs and deliver even higher levels of customer satisfaction. The move is part of a $3 billion cost-reduction initiative the company announced last year and is being made as a result of an ongoing comprehensive review of Dell’s global supply chain.
“We are proud of our 18-year tenure as a major manufacturer in Ireland,” said Sean Corkery, vice president of operations, EMEA. “This is a difficult decision, but the right one for Dell to become even more competitive, and deliver greater value to customers in the region.”
Dell expects to reduce its Limerick manufacturing workforce by about 1,900 employees over the next 12 months. The initial release of employees will occur in April, with the full transition expected to be completed by January 2010. Affected workers will receive a competitive severance package and career outplacement assistance as they transition from the company.
“We will treat affected employees with dignity and respect and offer them every practical support through this extended transition period to minimize the impact on them,” said Mr. Corkery. “We appreciate the support from the Irish government and the people of Limerick over these many years.”
Dell’s employees in Limerick will continue to coordinate EMEA manufacturing, logistics and supply chain activities across a range of functions including product development, engineering, procurement and logistics. The company’s Global Innovation Solutions Center and EMEA Command Center will remain in Limerick. Dell continues its significant sales, marketing and support activities in Cherrywood, Dublin.
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