Eastman Kodak is to reduce its workforce in Cork by 120 staff, writes Barry O'Keeffe. Announcing the move last night, the company said it was designed to protect the remaining jobs at its Youghal plant "in this competitive international marktplace". The company manufactures CDROMs in Cork and said it will continue to develop its technical capabilities and that the current level of direct capital investment of $60 million will remain in place.

Last January, the company announced that it had agreed a further £39 million investment with IDA Ireland to create a further 360 jobs in addition to the 250 jobs, it announced originally.

The current workforce is 347. Staff were briefed about the 120 jobs reduction last night.

An IDA spokesman said the market for CD storage disks had changed dramatically over the past month. It was driven by overcapacity and new entrants especially from the Far East. He said this had lead to a major fall in product prices.

The Minister for Enterprise, Trade and Employment, Ms Mary Harney, said she was disappointed, but added that there had been significant and unexpected changes in the worldwide markets for products. On a positive note, she cited recent new IDA project announcements and expansions such as Tytex which is adding 97 jobs and said she hoped those losing their jobs in Kodak would quickly be able to find suitable alternative employment. See also page 2