Online auction site eBay is to close its operation in Dundalk. The 150 staff at the Co Louth operation were given the news yesterday, with the company planning to begin a consultation process shortly.
The company is expected to leave the town in the second quarter of next year.
PayPal separated from eBay in July last year and took over as landlord of the facility, with eBay remaining there as a tenant. It is understood the decision to serve notice on eBay relates to the larger firm’s intention to expand its business.
“We can confirm that PayPal has served us notice as tenants of its Dundalk facility,” a spokeswoman for eBay said yesterday. “We will begin a formal consultation process with our colleagues in Dundalk and will share any further information with them as a matter of priority.”
Fianna Fáil TD for Louth Declan Breathnach said he was seriously concerned at the news. "The loss of eBay in Dundalk is a serious blow to the local economy in Louth and is particularly difficult for the employees that will be affected," he said.
“Unfortunately workers at the company have been left in the dark regarding their future. There was a series of rumours doing the rounds in recent months that eBay would seek to close its operation in Dundalk, and unfortunately this rumour has now been confirmed by management at the company.”
Mr Breathnach said it was “simply unacceptable” that the workers have had to put up with rumours for months “without any clarification being provided by management”.
Serious questions
He said serious questions had to be asked about why the company had decided to close its operations just over three years after moving its European headquarters to Dundalk.
Sinn Féin TD for Louth Gerry Adams said it was “dreadful news” for the staff of eBay and their families. “I have spoken to Minister for Jobs Mary Mitchell O’Connor today and I encouraged her and her department to engage with the workers to ensure that they are fairly treated,” he said yesterday.
“The fact that eBay has decided to cease its Dundalk operations completely is very worrying. The loss of these jobs will reverberate throughout the local economy. I understand that PayPal may be expanding their operations in Dundalk and I will be making representations to them to consider employing workers from eBay.”
Labour Party senator Ged Nash said the decision was “a major blow to the town and to the region”.
But he said he had been assured that as Paypal expanded, eBay staff would be be prioritised for roles there. “It is important over the next few months that every support possible is provided to the eBay staff in Dundalk by the company in terms of accessing alternative employment and training if requested and required by the staff who have been loyal to the organisation since its establishment in the region,” Mr Nash added.
Paddy Malone, spokesman for Dundalk Chamber of Commerce, said the news “is a bodyblow” for Dundalk particularly in the wake of the Brexit vote a few weeks ago
‘Extremely disappointing’
The chairman of Dundalk municipal district, Cllr Mark Dearey said, “given the efforts that were made locally by all the agencies to try and persuade eBay to stay in town, this comes as extremely disappointing news.”
For some of those employed in eBay in Dundalk, they will be facing the prospect of being made redundant for the second time in four years, as some of the workers joined eBay after Vodafone cut it’s workforce in the town.
One former Vodafone worker said last night: “You might expect to be made redundant once in your life, but nobody expects it to happen twice.”
One worker who did not want to be identified said staff were “devastated, there were people crying” when the news was broken.
“We were told we were to be made redundant and the jobs in Dundalk would be spread across Europe,” the worker added.