Smurfit Kappa is to cut 140 jobs from its 173-strong workforce at its paper converting factory in Co Cork.
Staff were briefed by management on the job losses this morning.
“This decision is the result of the major downturn being experienced in the Irish manufacturing industry which has affected Smurfit Kappa’s business due to the consequent significant loss of volume.
“The changes will come into effect following the conclusion of negotiations with employees and their representatives”, the company said in a statement.
The company said it was retaining a “significant manufacturing presence” at its Togher plant to serve customers in Munster.
Union Siptu said it would be seeking to maintain as many jobs as possible.
"The fact that the facility is to remain open offers an opportunity that jobs can be created when conditions improve," Organiser Paul Depuis said after today's meeting.
"Management at the company advised employees that due to the downturn in the economy and a resultant 50 per cent drop in it's order books it was left with no option but to restructure its operations. Many of its customers were firms requiring packing for products such as computers where demand has fallen sharply."
A preliminary meeting to discuss today's announcement has been arranged for tomorrow morning at the facility.
