The Nestle company has announced plans to cut the workforce at its Omagh, Co Tyrone factory by a third, as part of a rationalisation of the operation.

A total of 37 jobs will go at the firm's Beltany Road premises, which specialises in the production of powdered milk.

The decision, which is being blamed on economic problems, coupled with the BSE crisis, will also affect a number of the company's plants in Britain.

Mr Rob Murray, managing director of Nestle food division, said the company regretted having to announce the lay-offs, but promised every effort would be made to assist workers who lost their jobs.