The Kerryman (South Kerry Edition)
Fexco and Jam jobs shock
AS Kerry enters phase two of the easing of COVID-19 restrictions the scale of the virus’ economic impact has been highlighted by the loss of almost 250 jobs at Fexco and the Jam cafe chain.
Last week Killorglin based financial technology giant Fexco sent shock-waves through the financial sector when it announced it was to shed 150 staff.
Fexco – which employs close to 1,000 staff in Ireland with the vast majority of these ion Kerry – has been rocked by the COVID-19 outbreak which has had a devastating impact on the firm’s foreign exchange business.
In the same week the news that Jam cafes chain Kerry and Cork would not open their doors again also sent shock-waves through the towns of Kenmare and Killarney.
The company also has two cafes in Cork and its closure will lead to the loss of up to 90 jobs - the majority in Kenmare where both the cafe, bakery and food production outlet is based.
Fexco hopes to achieve its cut through a voluntary redundancy scheme which will see the Killorglin firm lay off almost 15 per cent of its Irish workforce.
Aside from its Killorglin headquarters the company also has offices in Cahersiveen and Dublin.
The cuts being sought by Fexco will relate to the company’s Irish operations and will affect all areas of the business.
Further cuts to Fexco’s 1,500 strong overseas workforce are expected to be announced in the coming weeks.
CEO Denis McCarthy said cost cutting measures – including pay cuts – that were introduced at the outset of COVID-19 crisis had not been enough to protect the company from the virus’ catastrophic impact on global tourism and travel.
He said he had taken the “difficult decision” with a “heavy heart” in order to secure the company’s future. “Early on in the crisis, rather than cutting jobs, we took steps to reduce costs through a threemonth phase of graduated pay cuts. Unfortunately, we now need to reduce our cost base further to protect the business for the long term,” Mr McCarthy said.
“Despite our efforts, we find ourselves in a position that I would have considered unthinkable just a few months ago,” Mr McCarthy said. “It’s clear that the impact of Covid-19 will not be short-lived, and the economic consequences will be severe,” Mr McCarthy said.
Just over a month before the Covid crisis Fexco opened a new research and development hub near Killorglin, which was supported by Kerry County Council through its property tax fund.
Cllr Michael Cahill said the job losses in Fexco are a ‘hammer blow’ to Kerry.
“Employment in Fexco is the life blood of the economy of all of Mid-Kerry and beyond. Families up and down this county are depending on receiving their income from Fexco and this news will come as a hammer blow” said Cllr Cahill.
Staff in Kenmare and Killarney at both Jam cafes have also been left reeling by the news of the closure of the hospitality business which has employed so many for almost 20 years. Many of the staff at the Kenmare cafe have been working there for many years and are devastated at the news.
Cllr Patrick Connor Scarteen said that towns like Kenmare rely on hospitality jobs.
“In a large urban area this might not be such a big blow but in a small area like Kenmare these jobs losses will have a huge impact on the town. It is sad for all involved, the staff and owner, James Mulchrone. With the Fexco news, that is almost 250 jobs in the Kenmare Municipal District and the first major job losses as a result of the Covid crisis.,” he added.