Dell, Ireland's biggest merchandise exporter, is to cut at least 400 temporary workers at its Limerick plant. In related news, Dell said it plans to increase parts purchases from China
The world's no. 2 PC maker is planning to sell plants to contract manufacturers or close plants that cannot be hived-off.
The Limerick plant with 3,000 full-time jobs, is at risk and Dell has 1,400 employed in Dublin.
The Irish Independent says that some of the 400 workers who are to be laid off this weekend worked in the Limerick plant from periods ranging between three and 18 months.
Workers were informed that they may be re-employed on a temporary basis if production demand should require it. Dell retains all the contact details of the temporary staff it employs.
Many of the affected employees were heavily reliant on Dell for their incomes and the losses occur with just over seven weeks to go to Christmas.
However, Dell last night claimed there was "nothing unusual" in the lay-offs.
"Temporary workers usually finish up at the end of the quarter so that is what it is. It is standard practice.
"The way the business model works is that temporary workers support the permanent workers as business requires them,"a spokeswoman said.
Dell opened a plant in Poland last year where costs are much lower than in Ireland.
Michael Dell, founder and CEO of Dell, was in Shanghai last week with his top management team to seek business opportunities in the Chinese market.
China is critical to Dell's global supply chain, Michael Dell said, emphasising that the company's procurement in China will total about $70 billion in 2009.
At present, Dell has 43% of the global purchase from China and the figure is expected to rise. Meanwhile, Dell's manufacturing resource in China will be transferred from the coastal area to the inland area to ensure its competitive advantage in cost.
