UP to 200 temporary staff are set to be laid off at Intel's computer complex in Leixlip, Co Kildare. The job losses were signalled earlier this month when Intel announced that demand for PC systems in the last quarter of 1995 was lower than expected, especially in the US.
The company is now engaging in a "write down" of stock and the shedding of marginal staff. Like most hi tech companies, Intel employs a large part of its workforce on short term contracts - about 500 of the 2,800 workers at the Leixlip complex are thought to be on contract.
People are hired on 16 week contracts, usually renewed for 24 weeks. If their work is satisfactory and demand buoyant, they are "assimilated" into the main workforce. About 600 contract workers were "assimilated" in 1995.
Yesterday, an Intel spokesman declined to comment on the scale of the lay offs but said they would be among short term, temporary staff in the motherboard assembly and system assembly plants. "The process is due to conclude on Monday," he added, "and we are sorry we haven't been able to conclude it without our employees hearing about it through the media.
"Intel Ireland is open and accessible to the media, and will continue to be, but we cannot say anything further until all our employees are informed and able to discuss the issue."
The company, a non union firm, will brief staff on the layoffs through their supervisors. The spokesman said there would be additional question and answer sessions with small groups of workers in the coming week.
Intel employs about 2,800 people at its Leixlip factories, of which about 1,800 are thought to work at the motherboard and system assembly plants.
The microchip manufacturing facility at Leixlip, which is in a separate plant, is not involved in the lay offs.
Apple Computers, which employs around 1,500 people in Cork, is also affected by the faltering growth in the international PC market. However, it has no immediate plans for talks with its union, SIPTU, and indications are that Cork will not suffer for cutbacks.