Job losses at Sykes and BuyLo

SHANNON suffered a double whammy on the jobs front this week with the shedding of 75 jobs at the technology support company, Sykes Enterprises and the closure of the discount retailer, BuyLo in the town centre.
Based in Shannon for over 20 years, the technical support firm has so far declined to comment on reports of the job losses but The Clare Champion understands that consultation with employees on redundancies has commenced.
The loss of a contract for outsourced technology support with Sony, one of Sykes’ largest customers, which has been moved to Cairo and Romania, is understood to be the reason for the company’s decision to seek the job cuts.
Headquartered in Tampa, Florida, Sykes Enterprises provides customer contact management solutions and services for clients across the world, mostly for those involved in the communications, financial services and healthcare industries. The company laid off 100 employees in 2009.
Meanwhile, 12 jobs were lost with Tuesday’s closure of BuyLo just seven months after the franchise model owned by the Barry Group, one of Ireland’s leading wholesale distribution companies, set up in SkyCourt.
BuyLo store manager, Sean Leo confirmed the decision has been taken for commercial reasons and he paid tribute to his extremely dedicated staff, who have been notified of the decision.
He said the decision to close was a “very difficult one for all working here at BuyLo in Shannon”.
“The retail industry is being exposed to particularly challenging trading conditions at present and, unfortunately, our store has fallen victim to these difficulties. I would like to take this opportunity to pay special tribute to our seven staff members, who have all worked extremely hard since the store opened earlier this year”, concluded Mr Leo.
BuyLo is an Irish discount retailer, which offers well-known brands of food, hardware and household items selling at significantly discounted prices. Other BuyLo stores currently operating throughout the country in Ashbourne, Mullingar, Tralee, Killarney, Waterford and Dublin are not affected by the closure of the Shannon store.
Shannon Chamber’s chief executive, Helen Downes has described BuyLo’s departure “as a jolt for retail at Shannon”. Expressing her disappointment that trading difficulties have forced a discount retailer to close an operation after a mere seven months, she described the decision as a real indicator of the difficulties all retailers are facing in these current stretched times.
“SkyCourt management put a lot of work into securing BuyLo as a client. To see them exiting the centre after such a short period of time is quite a shock and very unsettling for everyone in SkyCourt, including tenant retailers.
“Every business trading on the domestic market is finding it tough now; money is scarce and people’s approach to shopping has changed. With reduced disposable income, pricing has to be very keen. When a discount retailer such as BuyLo finds trading conditions difficult, it’s a real barometer of the struggle involved in winning market share and keeping doors open,” added Ms Downes.
Councillor Patricia McCarthy described the jobs losses in Buy Lo and Sykes as a major blow for employment in the town.
The Independent councillor also expressed concern about the loss of traders in Shannon Town Centre. “Every job is important. When you lose a job it is very hard to get it back. It is important that every effort is made to retain jobs in the town and create new job opportunities.
“It is positive that Sykes is staying in Shannon and hopefully, if business improves, there will be an opportunity to increase the number of jobs at the plant. We have had a number of job losses in Shannon but at least there haven’t been full closures and hopefully they may be in a position to recruit staff again in the future,” she said.