Molex, a manufacturer of fibreoptic connectors that employs almost 450 people in Shannon, Co Clare, has confirmed that it is to reduce its workforce.
A statement from the company released this afternoon said that it intended to "reduce headcount and related employee costs" in each of Molex's six divisions, as well as its corporate centre in the US.
Employees at the Shannon plant were briefed about the job cuts at a meeting this morning.
Molex refused to outline exactly how many jobs will be lost at Shannon but said that details will be provided in the company's second fiscal quarter earnings release on Friday.
Workers at the company estimated 100 jobs were likely to be lost. It is believed the rest of the workforce will be asked to take a pay cut.
The firm said that due to a sharp fall-off in demand caused by the global financial crisis, December quarter revenue is now expected to be in the range of $650 million to $670 million, compared to its prior outlook of $750 to $800 million.
"These are very difficult actions but are critical to help Molex respond to the most difficult business environment the company and the connector industry have ever seen. Employees who are affected by these reductions will be treated with respect and will receive support and assistance," the statement said.
Molex recently announced an increase to its restructuring plan, which to date has included the closure of a manufacturing plant at Millstreet, Cork. That operation was transferred to Shannon last January with the loss of 80 jobs.
Fine Gael said this evening that the news that up to a quarter of the workforce could be facing redundancy was devastating.
Local Clare TF Pat Breen said that the the employees were "the latest victims of this Governments failure to grabble with the economic crisis raging in this Country".
