Tech sector weakness claims 85 Dublin jobs

Eighty-five people lost their jobs at two Dublin-based multimedia firms last night in a further sign of weakness in the technology sector.

Educational Multimedia Corporation, founded by UCD graduate Mr Theo Lynn, laid off 50 workers while Internet firm Nua finally decided to apply for receivership with the loss of another 35 jobs.

Educational Multimedia Corporation is a subsidiary of Educational Multimedia Group, a designer and developer of elearning solutions. It employed 100 people in Dublin.

The company said it was laying off 50 workers in Dublin and eight in the US with immediate effect.

This would allow it to maintain a positive cash-flow and speed up the drive towards operational profitability, the company said.

A spokesman said that despite the number of lay-offs in Dublin, most of the savings would occur in the US, through the reduction of the marketing budget and other cutbacks.

"The company has taken this action following the slowing down of the US economy, slower than expected growth in the US e-learning market and difficult capital market conditions."

Educational Multimedia Corporation supplies off-the-shelf and custom e-learning solutions for both soft skills and information technology.

"The company has the continuing strong support and financial backing of its existing long-term investors and has sufficient funding in place for at least the next 12 months, beyond which it is anticipated that the company will be self-funding," the spokesman said.

Meanwhile, Nua, the Internet publishing firm headed by Mr Gerry McGovern, will apply for receivership later today, according to informed sources.

At a board meeting last night company management is understood to have decided to halt attempts to seek new funding and apply to the High Court for receivership.

Earlier staff were told to get in touch with social welfare offices as the firm would close. As reported last week workers were not paid their monthly wages last Friday.

Staff leaving the firm last night were despondent and would not talk to media. However, an employee who later contacted The Irish Times said some workers were angry at management.

It is understood Nua may owe up to £700,000 (€888,000) to creditors. Eircom, which holds a 20 per cent stake in Nua, is owed £220,000 in back rent. The Revenue Commissioners are also among creditors.

Nua is the latest in a series of Eircom-linked companies which have gone under. In January, Ebeon, a technology firm 51 per cent owned by Eircom, collapsed and laid off 170 staff.

A further 50 people lost their jobs at Viasec, a Donegal-based firm.