Analog Devices, a technology company which manufactures integrated circuits, will make 94 people redundant at its Limerick plant in response to difficult market conditions.

The firm, which employs almost 1,500 people at design centres in Limerick and Cork, said yesterday it would implement a voluntary severance programme in an effort to manage costs.

In addition, the firm will close its facility for three weeks during the Christmas holiday period to cut costs. Staff will be asked to take their annual leave at this time. This is the second time this year staff have been told to take paid leave at a specific time. In August the firm shut down for two weeks to save money on running costs.

Several other technology firms have implemented similar cost-saving measures.

Employees participating in the voluntary redundancy scheme will be eligible for six weeks pay per year of service plus statutory entitlements. In addition, extended medical benefits, enhanced pensions for employees over 55 and outplacement services will be available to employees.

Mr Alastair Purdy, human resources director at Analog Devices, said the semiconductor industry was experiencing a severe downturn and no improvement was expected until late 2002. "The industry is faced with extremely negative market conditions and increased uncertainty following the events in the United States on September 11th," he said.

Analog Devices has had a presence in the Republic for almost 25 years and its Limerick facility will continue to play a role in developing products. Over the past two years, more than $140 million (€154 million) has been invested in new manufacturing capacity at the plant.

The semiconductor industry, which designs and manufactures the chips that power a range of computing devices, has been dramatically affected by the global economic downturn. Analog Devices employs 1,500 in Limerick, Cork.

German engineering giant Siemens said yesterday it planned to cut around 14 per cent of its telecommunications workforce in view of the current difficulties facing the entire sector. Siemens, whose total global workforce numbers 460,000, employs around 115,000 people worldwide in its three main telecoms businesses, ICN, ICM and SBS. This includes a number among the almost 900 staff it has in Ireland.

Siemens shares fell despite the news, showing a loss of 2.7 per cent at €46.85 euros in late afternoon trading on the Frankfurt stock exchange.