Up to 360 jobs likely to be lost at Xerox in Dundalk

Up to 360 jobs are likely to be cut from the Dundalk operations of Xerox Europe after it was announced today the company is to drop the small office/home office (SOHO) sector of its business.

The company said it was ending this segment of the business in an effort to sharpen the "company's focus and support its turnaround strategy".

The company blamed the decision on a slowdown in the US economy and "its impact on the PC and SOHO markets."

The Tánaiste, Ms Mary Harney, said she was disappointed and concerned with the announcement.

She said it was unclear what affect today's news would have on the company's Irish operations but that she was keeping "in close touch with the situation."

Attributing the closure to the decline in international markets, she said: "The IDA is involved in close discussions with Xerox, to maximise the potential for the Dundalk Campus from the other elements of the company's business."

The reductions at the Co Louth plant - which employs 1,000 people - will come over the next six months. The company employs over 2,500 people in the Republic.

The company still intends to provide a support service for its customers in this sector.

A spokesman for Xerox Ireland told ireland.comthe job cuts have yet to be decided upon and at least 60 staff would be maintained for continued activity in the sector.

The Tánaiste also said the new at Xerox was another blow to the south-east region and followed the news of the closure of Wexford Weaving and the Waterford GlaxoSmithKline plant with the total loss of 234 jobs.

She said the Government is determined to redouble its efforts to secure new investment for regional locations - seen today with the launch of Enterprise Ireland's "Into the Region's" initiative.

SIPTU's Dundalk Branch Secretary, Mr John King said the job losses will bring despair to Dundalk which, in spite of significant economic growth in the country as a whole, has not seen any major investment.

Although the workers were not members of a trade union, Mr. King said he was appalled at the manner in which the job losses were announced.

"The loyalty and commitment of the Xerox workers deserve far better treatment than they have received," he said.