Workers on the inkjet line at Xerox's Dundalk operation reacted with anger and shock to the company's announcement.

One employee, Mr Gerry McDonnell, described the news as a "bombshell", adding: "I've been here eight months, and checked before I bought a new car and was told my job was safe. I've just paid off a holiday and have nothing now."

The job losses will have serious implications with many of the workers facing the prospect of having to maintain large mortgages on new houses as well as repayments for cars and holidays.

Workers on the other production lines spoke of the atmosphere inside as they left the plant at 4 p.m. at the end of their shift. "I'm sorry for the ones who'll lose their jobs and I'm lucky I'm not one of them but you have to worry about the future," said one.

Employees from the inkjet line had already gathered in the nearby Malt House pub but many were too upset to comment.

Mr Barry Miles was "shellshocked" by the announcement. "I just came back from holiday on Wednesday and came into work today to hear my job was gone. There are not a lot of jobs around Dundalk and that's why so many people were looking for work in Xerox. Now all of them will be chasing the same few jobs. It's looking bleak for the town," he said.