Staff at EMC's Cork plant have been asked to take up to an average of 10 days' unpaid leave between now and Christmas in a bid to cut costs.

Earlier this month, the US computer storage firm, which employs some 1,600 people in Cork, reported its first quarterly loss in a dozen years as it took an $825 million (€912 million) restructuring charge and battled stiffer competition amid an industry downturn.

EMC, based in Hopkinton, Massachusetts and founded by the US ambassador to Ireland, Mr Richard Egan, said it would increase the number of job cuts it planned to take this year to 4,000, from the more than 2,000 announced in September. That represents a cutback of 17 per cent, to about 19,000 people.

The compulsory leave has been introduced to pare costs and avoid job cuts at its Ovens plant in Ireland, a spokeswoman said. "Basically, it is a way to get around job losses," said the spokeswoman. "There were some job losses announced at EMC worldwide at the beginning of October. Ireland isn't affected. There are no job losses here, but as part of cost-cutting, the company has asked all staff to take up to 10 days' unpaid leave."

All staff at the company will be affected by the compulsory holiday leave. However, it is understood that technical staff may be required to take just five days' leave, while administration staff will have to take 10 days. Earlier reports that senior staff would be obliged to take up to 15 days' unpaid leave were dismissed by the spokeswoman. "Generally, I think the people in Cork are pleased that EMC has come up with something other than cutting jobs," she said.

EMC posted a third-quarter net loss of $945.2 million, or 43 US cents a share, reversing year-earlier net income of $458.2 million, or 20 cents a share. Excluding the $825 million pre-tax charge for job cuts, excess inventory, plant closings and investment write-downs, the company posted a loss of $270 million, or 12 cents a share. The loss was worse than analysts' estimates, which ranged from a loss of 11 cents a share to a one-cent profit, with an average estimate of a five-cent loss.