'A Christmas bombshell' says Cork TD as VMware says it will try to minimise job losses

EMPLOYEES at Ballincollig’s VMware are facing a ‘Christmas bombshell’ as 364 redundancies have been proposed for the company in Ireland.

It comes as US-based global firm Broadcom announced it had completed its acquisition of VMware last month and employees received correspondence informing them of “organisational changes and possible redundancies”.

The most recent letter sent to staff stated: “We are proposing to make headcount reductions in order to simplify the organisation structure by introducing clear lines of accountability and streamlining processes. We have provisionally identified that certain functions and positions will not be required as a result of the ability to take advantage of group resources and synergies.”

VMware employs more than 1,000 people in Ireland, with most of these in Cork.

People Before Profit-Solidarity TD Mick Barry called it “a Christmas bombshell” in the Dáil yesterday. 

“The new owners of VMware are proposing 364 redundancies — that is one job in every three. 

"How can a family enjoy their Christmas when their job is on the line like this and the new year is threatened by the spectre of unemployment,” he asked.

In response, Leo Varadkar said that VMware got in touch with Employment Minster Simon Coveney yesterday, and that they told him “that the company will seek to avoid the proposed redundancies, where possible, and will explore that in the consultation process with staff”.

“The IDA will work with the local leadership team to understand the skills profile of the affected employees and to match that with existing or target client skills requirements,” Mr Varadkar added.

Mr Coveney told

The Echo

: “This is a significant blow to the workforce in VMware as a result of a merger. My thoughts are with the workers and their families. The IDA will now engage with the company as the collective redundancy process progresses through the 30-day consultation period.

“It is important to note that the workers involved are highly skilled and are likely to be sought after elsewhere in the broader economy.

“There are also a range of Government supports available to anyone who is being made redundant, including assisting with appropriate training and development opportunities and income supports.”

VMware said employees would be retained on performance, skills, and expertise.

The company stated that consultation will take place on “alternatives to the redundancies, ways in which we might reduce the redundancies, how we can mitigate the impact on employees ... the proposed make-up of the pools from which we select employees ... selection criteria and method of selecting employees for redundancy”.

REDUNDANCIES

The headcount reductions are expected to take effect between February 9, 2024, for those employees required to work through a transition period, up to October 31.

Green Party councillor Collette Finn told The Echo: “At this time of year, coming up to Christmas, it must be an awful worry for people — we just have to try and see if other jobs can be attracted into the area.”

Fine Gael’s Garrett Kelleher added: “The employees of VMware play a key role in the local community and economy here in Ballincollig, including regularly sending teams out to work voluntarily on projects with local organisations, such as Ballincollig Tidy Towns, for the betterment of our local community.”

Fine Gael councillor Derry Canty said: “We expected the company to keep growing and growing, so to get this news, so close to Christmas week, is just terrible.”

Fergal Dennehy, of Fianna Fáil, said: “Particularly for a company where we expected expansion and growth in the region of 200 additional jobs, to see a reversal of that is bad for the economy.”