The spate of job losses in the high-tech sector continued yesterday when the phone and pager-maker Celestica said it would cut 450 staff from its operation at Swords, Co Dublin, from December.

Celestica blamed the cancellation of a major contract by Motorola for the redundancy plan revealed to staff at a mass meeting yesterday morning.

About 500 staff will remain with the company, which wants voluntary severance agreements with departing workers. Its general manager, Mr Noel Fogarty, warned that there would be compulsory redundancies if the scheme failed to attract enough volunteers. They will be offered six weeks' pay for every year of service and four weeks in lieu of notice.

Based in Canada, Celestica entered the Irish market in 1995. It was the beneficiary of a £2.9 million (€3.7 million) IDA Ireland grant at that time, although no grants are currently outstanding.

The jobs agency warned again yesterday that further job cuts were inevitable as the global slowdown continues. Recovery was not likely before the middle of 2002, its spokesman said.

Celestica acquired Motorola's phone and pager manufacturing operations only last December in a deal which saw 750 workers lose their jobs and 650 others transferred to Celestica.

About 315 of the cuts being sought are from the company's general operative grades, where the average wage is about £250 per week.

The remainder of the cuts will come from middle and management grades.

Celestica does not recognise trade unions and the company said it would enter a 30-day consultation period with staff. The cuts will be fully implemented by February.

The development yesterday followed the loss of 1,200 jobs throughout the State on Thursday.

It is a further setback to the north Dublin economy, where more than 2,000 Aer Lingus workers stand to lose their jobs and doubt surrounds jobs at FLS Aerospace, the former TEAM Aer Lingus which said last Friday that it was cutting capacity.

The area was also hit by the closure last summer of the Gateway Computer plant at Clonsaugh, when 900 lost their jobs.

The local Fine Gael TD, Ms Nora Owen, said the losses would have a "serious effect" in Swords and surrounding areas such as Skerries, Lusk, Rush, Donabate and Balbriggan.

"Workers have bought houses on the basis of these jobs and many could lose their homes now," said Ms Owen.

"Due to the downturn, other firms in the Swords area will not be able to take up these skilled workers."

The Green Party leader, Mr Trevor Sargent TD, said the losses would hit shops, restaurants and other businesses in the area.

He called for the establishment of a task force to foster local business and research and development facilities.

The Tβnaiste and Minister for Enterprise, Trade and Employment, Ms Harney, attributed the losses to the global slowdown and volatility in the information society sector.

She said F┴S, Enterprise Ireland, the Local Area Partnership and the Local Authority would link to form a training and job placement initiative for north Dublin.

Motorola's spokeswoman said the company had no comment to make. Mr Fogarty said Celestica was informed late last week Motorola wanted to cancel the contract. Celestica will continue to manufacture pagers for Motorola, which accounted for 70 per cent of its business before the contract was cancelled.

The company is understood to carry out work for Lucent, Eurologic and 3D Labs.

Asked if other jobs were threatened, Mr Fogarty said: "At the moment we don't believe there any risk to our ongoing business."