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Dell cuts 250 jobs as slowdown bites

250 Dell workers in Ireland get the boot

As part of ongoing plans to save £1.5bn worldwide, Dell is set to cut 250 jobs in Ireland.

Dell said in a statement that further cuts would be made across Europe, the Middle East and Africa, because there was "more work to do on cost to restore our competitiveness".

Layoffs will be made in Dell's Irish sales, marketing, finance, technical support and some administrative functions, it has been reported.

Dell employs 17,500 people in the EMEA region, and is expecting to cut from 700 to 900 jobs.

It would not comment on job losses in the UK.

"We are proud of our record of growth in EMEA but recognise that maintaining our success requires us to look critically at our operations. This does mean we need to make changes to our staffing in the region," Dell added. Some staff will be moved into customer-facing roles, it said.

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Dell is cutting "at least" 8,800 jobs globally, but chief executive Michael Dell has said cuts may in reality exceed that number. It is also restructuring its product design and distribution, and realigning its manufacturing strategy by shutting down some factories, while opening new operations in emerging markets.

Dell's job cuts are the latest in a string of tough events in the IT industry, as the global economy slows. AMD also plans to lay off 10 percent of its workforce by the third quarter of 2008, in an effort to cut costs.

Many analysts have indicated that businesses are likely to rein back IT spending. The Centre for Economics and Business Research has bleakly warned that the impending IT job loss rate will be worse than the dot com crash.

Gartner has warned that many firms would make a move to offshoring more IT functions in a bid to cut costs, and ChangeWave Research found in a survey that a number of businesses would reduce or halt spending in the second quarter of this year.

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