Almost 500 jobs are to be axed at the home of world-renowned Waterford Crystal, it was confirmed tonight.
Bosses at the company said its manufacturing outlet in Kilbarry, Co Waterford is to be reduced because of high costs and a lack of competitiveness. It says it will outsource production and some administrative operations.
Parent company Waterford Wedgwood confirmed it is seeking cuts in manufacturing, administration, warehousing and distribution and other operations in high cost countries, with the loss of 1,400 jobs - 490 of which will be at the Irish plant.
Unions have been locked in negotiations with management over the proposed cuts for some weeks but today's announcement was the first official confirmation of the extent of the job losses.
John Foley, Waterford Crystal's chief executive officer, said: "Manufacturing in Kilbarry, at the present scale, has become untenable due to a combination of high costs and unfavourable currency movements which have reduced our competitiveness by tens of millions of euro in the past five years.
"The only way to secure the future of the operations in Waterford is to close the parts which are uncompetitive and to outsource these activities to lower-cost environments which can meet the quality standards of the Waterford brand.
"While I regret the loss of 490 jobs, it is imperative that we continue to focus on our remaining cost competitive capabilities to secure the future of manufacturing in Ireland while continuing to monitor the value of the dollar," he said.
Waterford Crystal management has begun talks with employee representatives over the outsourcing plans. Just over two years ago, the company announced the closure of its flagship factory in Dungarvan, Co Waterford, with the loss of almost 500 jobs.