Some 150 full-time jobs and perhaps as many as 400 temporary posts are to go at the Apple Corporation plant in Cork. At a news conference there yesterday, the company confirmed the position regarding the permanent job losses but refused to detail precisely how many temporary workers would become redundant. However, union sources and employees at the plant said the figure could be as high as 400.

The news of job losses came as a mixed blessing for the 1,800 Apple employees. Apple has lost $1 billion (£722 million) in recent years and is now pinning its recovery programme on the introduction to the market of the iMac, a new low-cost and versatile desktop computer which will retail at $1,299. Mr Tim Cook, Apple's senior vice-president for worldwide operations, confirmed yesterday that the final assembly and test processing of the iMac would move to Cork to service Apple's European market.

As far as Apple was concerned, he added, the consumer and Internet friendly iMac was "a winner" and one that would help to re-launch the company's fortunes. He said the iMac was "the jewel in Apple's crown" and, while the loss of permanent jobs at the Hollyhill plant's printed circuit board facility was to be regretted, the decision to move part of the iMac operation to Cork was a signal that the company was keeping faith with an extraordinarily good workforce.

Every effort, he insisted, had been made to minimise the job losses and things could have been a lot worse. "Were this news conference taking place a year ago things might have been different," he said.

While massive losses have forced Apple to restructure in line with its competitors, Mr Cook said the omens were good. For the past two quarters, profits had been recorded and the belief was that the introduction of the iMac would consolidate this position. By next September, completed iMac units would be leaving Cork for markets throughout Europe.

On a day that would be seen by some as bad news, the confirmation that Apple's new desktop computer would play a significant role in future production at the Cork plant could only be seen as good news, Mr Cook said. The printed circuit board facility would now be moved to the Far East.

Yesterday's news conference was also attended by Mr Kieran McGowan, chief executive of IDA Ireland, who accompanied the Tanaiste, Ms Harney, when she visited the Apple headquarters in California last week in an effort to minimise the job losses.

Mr McGowan said that any loss of jobs was to be deplored but the decision of Apple to bring part of its iMac production facility to Cork was good news for the workforce and for the city. "It might have been a much more disappointing scenario but this has been avoided."

He added that Apple's commitment to Cork seemed secure. At one point, Mr McGowan added, the IDA had been concerned that all of Apple's operations in Cork would be moved elsewhere.

Mr Cook said that the iMac facility, which is now moving to Cork, was to have been based in Singapore. However, the quality of the workforce in Cork and economies of scale favoured the city as the base from which to market the new computer on the Continent.

Apple, he went on, was already at an advanced stage of discussions with those employees who would be leaving regarding details of their redundancy packages. "Our team here is second to none and we recognise that fact. That's why iMac is coming to Cork.

"Given the way the company's fortunes have been declining, I feel lucky to be looking back at two good quarters in which profits have been recorded. I cannot say as of yet what the third quarter will hold.

"From this plant we will have the iMac in the shop windows of European stores next September. We have had an incredible reaction to this product and we feel that this is where the future lies."