Computer giant Gateway has confirmed that it is proposing to close its Irish and UK operations. 900 jobs will be lost at the company's European headquarters in Clonshaugh in north Dublin. The company's Irish manager, Mike Moloney said that an alternative is "very unlikely".
The company already laid off 200 staff in April. A 30-day consultation process with workers is currently taking place and the company plans to wind down operations from 10 September to the end of the year or early 2002. The company announced losses last quarter of $20 million on the back of slow sales of personal computers.
Speaking to RTÉ Business News this evening, the Tánaiste said that the closure would come as a major blow to the employees and their families. However, Mary Harney said that she had spoken to the company's chief executive today about maintaining a European support service in Ireland.
Ms Harney added that she has instructed the IDA and FÁS to work closely to find alternative employment for all those who might be affected. The Tánaiste also said that she was not aware of any other job shocks in the pipeline and she is very confident about the future of other major US technology companies in Ireland.
The country's largest trade union, SIPTU, has described today's announcement as a "devastating blow". Regional Secretary, Jack Nash, said that SIPTU was prepared to make available the extensive expertise of its industrial relations staff.
Fine Gael's north Dublin deputies Nora Owen and Richard Bruton have described the closure as a "devastating blow" to Dublin's northside. They warned that "there is now reason to be seriously concerned about the stability of the whole technology sector in Ireland". They have called for a Government assessment of the threats to the technology sector. They also called for the Tánaiste to immediately appoint a task force to assess the effects of the closure on the area.
Gateway established its European base in Dublin in 1993. It was one of the State's flagship high-tech investors supplying personal computers to Europe, the Middle East and Africa from its plant in Clonshaugh.
However, Gateway's sales have fallen in Europe. They were down by 46% during the last quarter, making it the worst performing area for Gateway world-wide. Sales in the US and Asia fell by 36%. Gateway had said that it would seek to reduce its 10,000 strong global workforce, and last month, the company's Irish boss, said job cuts here were "inevitable".
In a further blow to the technology sector, travel software company Datalex has confirmed the loss of 29 jobs with the closure of its Malahide office. The Dublin job cuts had been first signalled last month. The company is also to close its offices in Johannesburg and Arizona.
