Seventy-five workers at the Procter and Gamble pharmaceutical manufacturing plant in Nenagh, Co Tipperary, were told yesterday of a decision to terminate their jobs.
Senior management with the multinational cosmetic company informed workers at quarterly production meetings that a total of 15 short-term, temporary staff would be let go, together with 60 long-term, temporary staff.
Senior management also told staff that a "sourcing study" is to be undertaken at the factory, but a spokesperson categorically stated that this was in no way associated with the job losses.
Local TD Máire Hoctor (Fianna Fáil) said: "I spoke with Minister Noel Treacy as soon as I was informed and he has assured me that he will be in contact with the IDA on the matter."
Marion Baker, the company's Newcastle-based press officer, confirmed that the company was undertaking a sourcing study at the plant.
"The loss of the jobs and the sourcing study are not linked in any way and the reduction in job numbers can be attributed to seasonal variations," she said. "The staff were informed at normal quarterly meetings throughout Thursday."
Procter and Gamble has been in Nenagh for more than 25 years and is the largest employer in the town. The plant chiefly manufactures products for the Max Factor and Cover Girl make-up ranges, and also produces Oil of Olay and shower gel for the Hugo Boss and Laura Biagotti range.
In 1999, the company consolidated its production at its Nenagh plant and closed its plant in Wakefield, Yorkshire, England, with the loss of 380 jobs.
The rationalisation programme led to the creation of 200 new jobs at Nenagh and the influx of a number of workers from Wakefield to Nenagh.
The news of a sourcing study at the Nenagh plant has raised workers' concerns for the fate of some 500 other jobs at the plant.
One worker said: "I'm very worried about this news. We already went through one of these studies before and luckily we came out on top. We might not be as lucky this time.
"There are a lot of people working in the factory who have big mortgages and new cars. It will be a huge blow to the town if the factory eventually upped sticks and left to go to eastern Europe or the far east."
The worker added that he and his colleagues were informed that there would have to be improved results at the factory. "We were told that results and figures will have to improve, otherwise there could be implications for the future of the plant," he said.
Mayor of Nenagh Tony Sheary said he was very disappointed at the loss of the jobs but was confident regarding the future of the plant.