370 jobs to go at Element Six
Shannon based diamond manufacturer, Element Six is to lay off 370 workers, it was confirmed this morning.
Whilst manufacturing and distribution facilities will be wound down, Element Six will keep 80 staff involved in Research and Development as well as global customer Support.
From Element Six Statement:
This decision is the result of a comprehensive strategic review of Element Six’ global manufacturing operations to improve cost competitiveness and secure the Group’s long–term future.”
“The Shannon operation is the highest cost manufacturing site in the Element Six Group. Despite a series of cost reduction programmes in the past few years, continued production at the Shannon site is no longer sustainable or viable, and the primary business it serves is loss-making.”
The complete wind down of manufacturing and distribution should be completed by year end. These parts of the Shannon facility will be relocated to other Element Six sites.
Responding to the announcement, Limerick East TD for Labour, Jan O’Sullivan Said:
Of course, my thoughts today first and foremost are with those people who have learned that they are to lose their jobs, and in a period when unemployment is still spiralling upwards, it is likely to be very challenging for people to get back on their feet in the short term.
“I am extremely concerned by the seemingly relentless increase in unemployment throughout the Mid West. The Government must immediately publish the Dell Taskforce report, and then act on its recommendations as a matter of urgency. I am calling on the Minister for Enterprise Trade & Employment to immediately focus on this region with the IDA and the other state agencies, with a view to stemming the jobs flow.
UPDATE: Staff can expect a whopping one week redundancy pay on top of statutory redundancy per year served from the biggest diamond company in the world. That coming from the Irish Independent.
And irony of ironies, the chief executive of Element Six in Shannon is on the Midwest Jobs task force, set up following the closure of Dell.