The 25 staff at the UK-owned Alchemy computer software solution centre in Castlebar have expressed dismay at the sudden announcement that the company is closing its operation in Co Mayo.
Rationalisation of operations was the reason given for the closure by management.
Alchemy, a venture capital company, bought the software development company from Cedar Ltd in January 2002.
Cedar Ltd, also a UK-based company, had set up two separate operations in Castlebar in 1999 - a call centre and a software service development centre.
The Tánaiste, Ms Harney, announced 150 jobs for Castlebar by Cedar Ltd in May 1999, but that number of jobs never materialised.
Cedar experienced financial difficulties in 2001, and sold the two operations to two separate companies.
This week's closure announcement by Alchemy of the computer software solution centre has no impact on the call centre.
The Mayor of Castlebar, Labour councillor Mr Michael Kilcoyne, yesterday condemned the manner in which UK management at Alchemy announced the closure to staff.
"The highly-skilled workforce had just completed a major project release on Monday (May 12th) and then the next evening were suddenly told by a UK delegation that had flown in that the company was winding down the Castlebar operation and put staff on a month's notice," said Mr Kilcoyne.
"It's not acceptable to treat dedicated staff in this way.
"The only explanation given by management to staff for the closure is rationalisation.
"In addition, I believe, serious questions must be asked about fanfare job announcements by Government Ministers before any actual job has been created.
"In this case I am referring directly to Mary Harney's 150 jobs announcement for Castlebar under Cedar Ltd four years ago.
"Castlebar never saw that number employed by the company."