Staff at Xerox's operation in Dublin face a "realignment of responsibilities" within its shared financial services division. Management briefed the employees on the issue yesterday.

A Xerox spokesman said last night there would be no redundancies at the operation, which employs 1,600 people, but could not confirm whether or not staff would be relocated abroad.

Workers within the shared financial services division, which employs less than 200 people in Dublin, will move to different jobs within the organisation as part of the realignment.

It is understood the copier maker will make a number of corporate announcements affecting its Irish operations towards the end of next week.

Xerox is engaged in a major corporate restructuring and has announced the elimination of 3,200 jobs since October, out of a total workforce of 94,000.

The company announced last year it was seeking cost reductions of about $200 million in its manufacturing and design operations as part of a $1 billion global cost-cutting plan.

Reports in the US yesterday said the company had decided to fire 200 workers at a plant in Webster, New York as a result of the company moving a production line to Mexico. Fears are growing that the company will not be able to follow through on its planned $700 million investment programme in the Republic.

The firm has two major operations. In Dublin it has established a shared services and European business service centre, which employs around 1,600.

It is also constructing several manufacturing plants in Dundalk which should be completed by 2002 and employ up to 2,100 staff.