US pharmaceutical company Allergan is to cut one third of its workforce in Westport, Co Mayo.
The company, which employs 950 people in Westport said it was cutting 325 jobs in the factory where it manufactures the anti-wrinkle treatment Botox. A total of 240 permanent and 85 temporary employees will be affected.
The losses have occurred following the spin off of Allergan's optical medical device business to Advanced Medical Optics (AMO).
This decision was taken in 2002 to enable Allergan to focus on its core high growth businesses in specialty pharmaceuticals.
US tax rules require Allergan to cease all contract manufacturing arrangements with AMO, by the end of June 2005.
Workers were informed of the restructuring this morning. Allergan will be offering voluntary redundancy terms to employees and providing outplacement assistance, financial advice and job search training to departing employees. The redundancies will be completed by June next year.
The Minister for Enterprise Trade and Employmnet, Mr Martin, said the decision was a "blow to Westport, the employees of Allergan and the families of those affected".
The Minister welcomed the statement of commitment to Westport from the chairman and president of Allergan, Mr David Pyott. "The recent investment of over €70 million in Westport is a good indicator of this commitment" said the Minister " and we look forward to seeing the new products mentioned in company statements being introduced into the Westport operations."
Westport-based, Fine Gael TD, Mr Michael Ring called for assurances from the Minister that new jobs will be located in the area.
Since its arrival in Westport in 1977, Allergan has expanded its operation to become one of the biggest employers in Co Mayo.