Sykes Workers Await Announcement On Job Losses

Monday, 05 December 2011 11:48

Written by Pat Flynn

A Shannon-based technology support company will to close its operation within months resulting in the loss almost 140 jobs.

Shannon-based Sykes Enterprises has not yet confirmed it's intentions but according to staff, they were notified of plans last week.

The Florida based company, which established in Shannon in 1987, provides customer contact management solutions and services for clients across the world.

In its latest Securities and Exchange Commission (SEC) filing in the US, the company plans to "divest its operations in Ireland, the Netherlands and South Africa."

While the company has admitted it earn almost $30m (€22.2m) from these operations before the end of the year, Sykes has said the facilities are unprofitable.

Workers in Shannon have been told that the company will cease operations in Shannon before the end of April 2012 and that just a handful of people will be kept on for a short time longer for a 'clean-up operation.'

It is now thought that Sykes intends relocating the business to Egypt and Romania. According to one worker, management have said consultations with staff regarding severance will commence next week.

In June 2006, during a trade mission to Japan, then Enterprise Minister Micheál Martin announced plans by Sykes to increase its workforce by 100 in Shannon. Two years later however, in 2008, 100 jobs were lost at the Shannon operation.

Earlier this year, Sykes let 75 workers go after the company lost a contract to provide outsourced technology support to Sony, thought to have been one of Sykes' largest customers.

Mayor of Shannon Mary Brennan (FG) said last night: "I am shocked and devastated by the news. Syke have been here a long time and have been very good to Shannon. This decision will not only affect Shannon but also surrounding areas and even Limerick people who work in Sykes."

"And, coming up to Christmas it's a disaster for staff and there will be knock-on effects for other companies in the area including security and catering. While I would be confident that the company will do so, I would still call on management to ensure workers get a good deal before they go"

Clare Fianna Fáil TD Timmy Dooley said: "I would appeal to the company to come forward with a clear statement on where the operation in Shannon stands. The news coming out of Shannon is not good and the company should put a stop to the speculation and state its intentions."