The midwest was hit with bad news for the employment market today as it emerged up to 207 jobs will go in the region.
Shannon Aerospace, one of the largest employers in the midwest, said today it would cut 107 jobs from its Shannon airport-based business.
Meanwhile, up to 100 jobs are to be cut at Elsevier, which publishes scientific and medical literature, in Shannon.
Staff at Shannon Aerospace were called to a meeting with management this morning where the company outlined the cuts as part of a reorganisation. The cuts include three senior management posts, 20 other management jobs, 64 staff in administration and support, including logistics, engineering, planning, and 20 production technicians.
Managing director Thomas Rückert said the volume of work has declined considerably as domestic and international aerospace markets have changed.
"This is the most difficult day ever experienced by Shannon Aerospace in its 20-year history," he said. "Our current cost base is not only too high but is also unsustainable. To survive in this market place it is vital that we reduce our costs and improve our competitiveness. We are currently competing against facilities in regions with much lower labour costs and we have to realign Shannon Aerospace Ltd in order to respond to the massive challenges affecting our business."
Mr Rückert said the company would develop its provision of engineering, design and technical services for our partners in aircraft leasing.
"We have looked at every possible option in order to minimise the impact on our workforce. However, we have had to make some really tough decisions and I know today's news will not be easy on anyone," he said.
Today's announcement puts an end to speculation over the past few weeks that the company planned to lay off workers. The company employed 783 people last May, including 137 trainees.
The company is a subsidiary of Lufthansa Technik AG. It provides maintenance, engineering, painting and technical services to airlines.
Separately, Elsevier said it would be seeking 100 redundancies out of its 108-strong workforce.
"The loss of 107 jobs at Shannon Aerospace is a tragedy in its own right. But the loss of another 100 jobs at Elsevier makes this one of the worst days for job losses in a long time," said Fine Gael TD Pat Breen. “It is now vital that all relevant State agencies provide retraining and upskilling to all affected staff members. At the same time, I want to see genuine efforts made to attract new employers into the region."
Clare Fianna Fáil TD Tony Killeen said he had asked Minister for Enterprise Batt O'Keeffe to ensure the region featured prominently in the enterprise agency's delegation to the US this weekend.
"Every effort must be made at local and national level to ensure that the Shannon Free Zone maintains its position as the location of choice for global businesses across a variety of industries," he said.