Dublin tech firm lays off a third of staff

A Dublin information technology firm backed by senior business figures and Enterprise Ireland has laid off 25 of its 75 workers.

Aran Technologies, which received $6 million (€6.6 million) in funding last year, is believed to have informed staff of the redundancies on Tuesday.

An informed person said this followed a decision by Ericsson and Logica to cancel a research and development project. Neither Ericsson nor Logica would comment yesterday.

Aran has a strong board composed of influential business figures. These include a former IDA Ireland chief executive, Mr Kieran McGowan; the former SmartForce chairman, Mr Bill McCabe; the chief executive of Parthus Technologies, Mr Brian Long; and the founder of the Crucible seed capital fund, Mr Gerry McCrory.

The company develops products used in the management and operation of third generation and other mobile phone networks.

Its managing director, Mr Brendan McDonagh, was unavailable yesterday to comment when his office was contacted by The Irish Times.

Mr McDonagh held almost 38 per cent of the company at the end of last year. Aran's secretary, Mr Tom Morrisroe, held almost 19 per cent.

Investors in Aran include Enterprise Ireland. Companies Office records indicate that the State body approved a £220,000 employment grant to the company for this year. It is thought that part of that payment may have to be returned following the redundancies.

Other investors include Ardrina Ltd; the Cross Atlantic Technology Fund; the Co-investment 2000 fund and the Molyneux Secretarial Services Ltd.

Individual investors include Mr McGowan, in addition to Mr Martin Scully, Ms Blaise Brosnan, Mr Brian McMahon, Mr Fergal Kelly and Ms Frances Durcan.