The Shannon-based company Element Six, formerly known as De Beers Industrial Diamonds, announced today it intends to make 150 staff redundant before the end of the month.
The company, which employs 620 people in the manufacture and distribution of industrial diamonds and super-hard materials, told staff about the planned redundancies this morning.
According to the company, the redundancies are part of a group-wide cost-saving programme in the organisation, not just in Ireland but across the world.
General manager of the Shannon site Ken Sullivan said sales had halved in recent weeks.
"Our major customers include those in construction, automotive, general engineering and the drilling for oil and gas. All of these are caught up in the down turn in global business," he said.
"In some sectors, sales are running as low as 50 per cent of what we would have expected a few weeks ago."
The company is to start discussions with employees and their representatives immediately.
In a statement this afternoon, Siptu said it regretted the loss of the high quality jobs at Element Six but that it "had negotiated good redundancy schemes with the company in the past when there was a downturn in the market and it hopes to do so again if necessary."
Siptu Branch Organiser Tony Carroll said the union will take up the offer of an early meeting with Element Six over the proposed redundancies at the Shannon plant as a matter of urgency.
"We welcome the fact that the company accepts any redundancies must be on a voluntary basis. It is not surprising that production at the plant has been cut back because of the economic downturn but it is a shock that Element Six wants to reduce the workforce numbers before Christmas," he said.