Pharmaceutical giant Elan has confirmed that it is reduce its workforce by 1000 worldwide, including 330 in Ireland, by the end of the year.
The company said today it would be cutting over 250 jobs at its Irish headquarters in Athlone, Co Westmeath. There are currently 780 staff at the plant.
The cuts will also affect Elan's offices at Lincoln House and Trinity College in Dublin, where a total of 80 jobs will go.
It is understood the company is also considering selling their property in Athlone, if a suitable offer emerged after the completion of an American investigation of accountancy practices.
The job cuts are part of a restructuring programme which will result in a streamlined Elan with reduced businesses and assets, the company said.
In all, Elan will cut its international total of 4,700 of employees by 1,000 before the end of the year.
The Tánaiste and Minister for Enterprise, Trade and Employment, Ms Harney said she was "deepley disappointed" at the news of the Irish job losses.
She said she has been in contact with IDA Ireland to make the search for replacement employers a priority. They will focus not only on Dublin and Athlone, but also on Macroom, Co Cork, where Elan has cancelled a planned project.
She has also asked FÁS to begin the process of trying to establish what training the redundant workers will need to enable them to find new jobs quickly.
Elan announced today a net loss of $802.0 million for the second quarter of 2002 compared to net income of $134.3 million for the second quarter of 2001.
In a statement issued before the opening of the markets in the US, the coampany said the objective of the recovery plan was to enable Elan to meet its financial obligations.
Elan says it has also identified a substantial portfolio of businesses, assets and products which are no longer core to the new Elan and which are likely to be sold off.
The objective is to raise $1 billion in the next nine months and a further $500 million by the end of 2003.
It has also decided not to go ahead with an option to buy certain dermatology products from GlaxoSmithKline for around $180 million.
The implementation of the cost reduction program will result in reduced operating expenditure of approximately $300 million annually.
"Through the implementation of the recovery plan and the repositioning of the business we will secure the company’s long-term future," Dr Garo Armen, Chairman of Elan said.
"We have made significant advances in recent weeks and are implementing tough decisions to make the new Elan a stronger company, reinforce our liquidity, preserve our pipeline and rebuild our credibility.
Shares in Elan dived nearly seven per cent to two euros after initially rising more than 11 per cent when details of the recovery plan were released.
By 1510 GMT, Elan shares were trading unchanged at €2.15 in a Dublin market up 2.7 per cent. They gained 2.3 per cent in New York to $2.27.