There was mixed news on the employment front yesterday as a further 250 jobs were lost to manufacturing, while one services company announced plans to hire 125 extra staff.

Some 112 permanent and 53 contract jobs are to go in Tralee and Caherciveen, Co Kerry, as a result of Sports Socks Ireland's decision to end production in the Republic. The company blamed "unsustainable" manufacturing costs for its decision.

Management at Sports Socks Ireland told workers that the redundancies would be made on a phased basis. The bulk of the jobs will be lost in Tralee, but 76 permanent and contract workers in Caherciveen will also lose their jobs.

The company signalled that it was in trouble last August when 150 jobs were cut in Caherciveen and workers at the Tralee plant were put on protective notice. Parent US company Kellwood has since been bought out by Israeli firm Delta Galil Industries, which is based in Tel Aviv. Eight permanent sales and administration jobs will remain in Tralee.

Meanwhile, US giant Honeywell said it would be seeking 82 voluntary redundancies from the 561 workers at its car engine parts manufacturing plant in Waterford. The company is automating part of its processes in a bid to cut costs and boost quality.

A spokeswoman said last night that Honeywell management was discussing the voluntary redundancy proposals with trade union representatives. The company employs 800 people in four plants in the Republic. Last year, it laid off a number of people in its software division after moving part of this operation to India.

However, expanding customer services specialist Contact Partners balanced the bad news by announcing plans to create 125 jobs in Co Mayo.