Compaq will consolidate its professional services support centre in East Point Business Park with its technical support team in Clonskeagh to increase efficiency at the ailing computer firm.
The move will result in the transfer of up to 280 staff who work at the East Point offices and will raise fears of job losses at its Irish operations, which currently employ 2,200 people. Compaq's Clonskeagh offices could not accommodate all the East Point employees without extensive refurbishments.
It is also understood Compaq is still reviewing its global and Irish operations to decide where it can shed jobs to cut down on costs.
However, Mr Jack Cunnane, managing director of Compaq's Clonskeagh operation, said last night the move was not being done to reduce headcount, pointing out that he was continuing to hire staff at the site.
He said the consolidation would create one global services unit with greater efficiencies and flexibility. He said the idea had first been put to Compaq management in November 2000.
Mr Cunnane said Compaq had not yet finalised what it would do with its lease on the East Point office.
Compaq, which recently announced a merger with Hewlett-Packard that will mean at least 15,000 job cuts worldwide from both firms, is suffering a decline in sales due to the unstable economic climate.
This week the company announced another profit warning and said that its third quarter financial results had been disproportionately affected by disruption caused by the September 11th attacks in the US.
Mr Cunnane said the consolidation had nothing to do with Compaq's proposed merger with Hewlett-Packard. "Until the deal goes ahead, assuming it goes ahead, we are competitors to HP."
