Apple Computers is expected to announce up to 500 job losses at its plant in Hollyhill, Co Cork. The company's decision to move the production of its new iMac computer, currently manufactured in Cork, to other locations is believed to be the reason behind the cuts.
Some 400 temporary employees are expected to lose their jobs, while up to 100 permanent staff may be offered redundancy. The company employs about 1,400 people. An announcement of the cutbacks could come early next week.
Despite criticism from local politicians the company refused to comment last night on the restructuring. IDA Ireland, however, confirmed there would be a major announcement shortly "affecting the Cork plant".
SIPTU, which represents the majority of workers, said it would be having a meeting with senior management next week. The union's vice-president, Mr Des Geraghty, said it was distressing for workers to have to wait for news about their jobs.
The Tanaiste and Minister for Enterprise and Employment, Ms Harney, speaking in Cork last night, said she had received assurances from Apple that the company would maintain a manufacturing base in Cork, but she refused to be drawn on reports of major job losses.
"The IDA met Apple last week and we've had ongoing contact in the light of their global restructuring. I'm assured there will be an ongoing manufacturing facility in Cork. Apple will have significant presence here," she said.
It is understood the Hollyhill plant will continue to produce the high-end G3 Power Mac portable computer and possibly other Apple products.
In an ironic twist the success of the iMac has resulted in Apple's decision to outsource its production, most likely to the South Korean electronics company, Lucky Goldstar, which has plants in low-cost locations such as Mexico.
It is understood Apple believes that under the arrangement with Lucky Goldstar it can produce higher volumes of iMacs at lower cost than is possible in Cork.
Last July Mr Tim Cook, Apple's senior vice-president for worldwide operations, said the iMac could mean future growth at the Cork plant. During a briefing for local TDs, the iMac was described by Apply executives as the "saviour" of the plant.
The restructuring announcement will come from Apple's headquarters in Cupertino, California. It is likely to involve job losses at some other locations where the iMac is manufactured.
An IDA Ireland spokesman said its senior executives had made several trips to the US to discuss the situation with Apple. "They are aware of all the arguments in favour of Cork," he said.
The exact details of the restructuring are not known. It is possible Apple will consolidate all its iMac manufacturing activity in one facility or it could be spread among several centres.
Last January Apple closed its Claris subsidiary in Dublin with the loss of 125 jobs. In March the company said it was reviewing its operation in Cork, and industry analysts said the company was likely to close its printed circuit board (PCB) factory in the city.
In June Ms Harney and the then chief executive of IDA Ireland, Mr Kieran McGowan, travelled to Apple's headquarters, seeking a commitment from the company that it would maintain as many jobs as it could in the Republic.
The following month Apple said it was moving its PCB plant to the Far East, with the loss of 150 fulltime employees and as many as 400 part-time workers.
On the same day it said the Cork manufacturing plant had been chosen as one of several around the world to make the iMac.