The majority of Intel?s 3,200 staff at its Leixlip plant near Dublin will be obliged to take two weeks annual leave this Christmas so that the factory can be shut.
Intel said the move was to allow it control costs and that market conditions demanded the move.
A small number of staff will continue to work on vital projects.
The dates planned for the closure are between December 20th and January 6th. Staff who have already used up their quota of holidays will be instructed to take two weeks from annual leave due in 2003, or take unpaid leave.
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A spokesman for the company said their had been very little reaction to the proposal.