There's a large portrait hanging in the reception area of Elan's main building in Athlone. The painting is of a smiling Don Panoz, company founder. Mr Panoz is standing outside Moyvannion Castle, which Elan owns and stands majestically amid manicured lawns and shrubs four miles out on the Roscommon side of town.

Both are classical symbols of Elan's success and growth but few employees took even as much as a sidewards glance at the painting yesterday afternoon.

"The bubble has burst," said one employee as he made his way to the on-site gym where 300 job losses at the Athlone facility were announced in the afternoon. It will be a further two weeks, however, before a detailed breakdown on where the cuts will be is released.

Situated in Monksland, Co Roscommon, it had come to represent a definite shelter through the storms of recession and cutbacks of the late 1970s and 1980s. It represented success. And more success. When share options were granted to employees, holidays, new cars and new homes were funded.

Local Labour deputy Mr Willie Penrose has described the losses as a "catastrophe for Athlone". Fine Gael's Mr Paul McGrath added: "Some families in Athlone had a number of family members working in Elan and these will be particularly hard hit."

Senior management talked yesterday about a "new Elan" but few workers had the stomach to believe company statements that suggested Athlone remains a "core part" of Elan's future.