350 Cork jobs at risk as Motorola may close unit

Electronics and mobile phone company Motorola is considering a proposal to cease all engineering functions at its Cork plant which would result in the loss of 350 jobs.

The US-based company informed workers today of its intention to enter an employee consultation process regarding the future of the Mahon site on the south side of the city.

The company said if the proposal was to be confirmed, "it would result in the vast majority of employees at the site being at risk of redundancy and could make the site unsustainable as a Motorola facility".

"Motorola fully intends to carry out the consultation process with the highest possible level of consideration for all of its employees in Cork at this very difficult time," it added.

Earlier this month, the world's second-biggest maker of mobile phones said it intended to cut 3,500 jobs - or about 5 per cent of its workforce - as part of a re-structuring plan to reduce costs.

The job cuts - which are expected to save the company about €309 million ($400 million) over two years - will be completed over the next six months.

Motorola, which has 67,000 employees worldwide, had previously issued a profit warning, suggesting that fourth-quarter profits would be well below expectations because of a mobile phone price war that broke out during the crucial holiday selling season, affecting average selling prices.

Labour councillor Ciarán Lynch said: "Motorola has been a major employer in the area for the last 25 years, and most of the jobs at risk are high-end, well paid positions. Such job losses would represent a savage blow to the local economy and to the families directly affected."

Mr Lynch called on the Minister for Enterprise, Trade and Employment Micheal Martin to take immediate action in response to the announcement. "Minister Martin must be pro-active in insuring that job losses are kept to an absolute minimum," he said.