The workforce at Harland & Wolff is now just a third of what it was in March, when it employed 1,850 people. The announcement by the North's First and Deputy First Ministers, Mr David Trimble and Mr Seamus Mallon, of a task force to tackle the job losses at the company is unlikely to raise the hopes of those workers remaining. Although trade union bosses remain hopeful that those laid off would return to the yard in the event of a new order there is a growing fear that Belfast's shipbuilding engineering skills could be lost as workers seek employment elsewhere.
The morale of the workforce will be hit hard by the job losses which come just a week after the company won a £22 million arbitration battle with its last major customer, Global Marine.
Fred Olsen Energy, the majority shareholder in Harland & Wolff, had threatened to close the yard if it lost this legal battle. But in the short term, it has done little to relieve the pressure on the yard.
The current malaise is caused by Harland & Wolff's failure to firm up a £300 million deal signed with a Bahamas-based company, Seamasters International, for four Ropack (roll-on roll-off passenger vessels) which was announced in May.
It is understood Seamasters International is having difficulties raising the 20 per cent deposit from investors required before negotiations on government intervention aid and a guarantee scheme can go ahead.
Harland & Wolff has also failed to deliver on a letter of intent signed with Luxus Holdings for an order for two cruise ships worth $300 million. Recent media speculation has suggested this order is likely to go to rival UK yard Cammell Laird.
With no major orders in the pipeline, the future of the yard looks bleak despite a corporate restructuring plan initiated earlier this year. This plan created a new holding company called Harland & Wolff Group Plc and effectively ring-fenced a further £133 million potential liability under arbitration with Global Marine. This is expected to be ruled on next year.
At around the same time as the corporate restructuring, the shipyard struck a deal with the Belfast Harbour Commissioners which will free up a 100-acre riverfront site in Belfast for development.
Revenue from the proposed Titanic Quarter site would be split 50/50 between the commissioners and Harlands. But if the shipyard fails to survive, it is unlikely to cash in on this opportunity.