More than 200 jobs across both the new and old economy were lost yesterday, with the south-west being hit particularly hard. Cutbacks at firms in Cork and Kerry are seen as another blow to the region, as the economic downturn continues to take hold.

Staff at Youghal Carpets at Carrigtwohill near Cork were told yesterday that 105 of the 260 jobs would go because of the worldwide recession in the textile industry. Workers at the plant had been aware for some time that the industry was in difficulties, but the extent of the job losses had not been anticipated.

In Dublin, Sepro, a developer of billing software for the telecoms industry, has shed a third of its staff in a restructuring plan which will also involve voluntary pay cuts. The firm's vice-president of operations, Mr Martin Ganter, said yesterday that headcount at the firm had been reduced to 32, down from 51 staff. Two of Sepro's four executives, Mr David Miller and Mr Martin Morgan, had taken redundancy, Mr Ganter said.

The announcements followed news in Killarney that 84 workers of the 278 employed by women's underwear manufacturers Sara Lee were also to be lost.

Sara Lee operates out of the former Pretty Polly plant in the town, following the closure of that firm some years ago.

A number of the workers had been recruited from former GSI staff in Macroom, Co Cork, who were made redundant last summer when the company closed suddenly.

The Carrigtwohill job losses will be felt particularly in east Cork, which has relied heavily on Youghal Carpets since it was established in the town in the 1970s. At peak production, the plant employed more than 1,000 people.

Builders in the city warned that the CIF's estimate earlier this week of 1,500 job losses before Christmas may be too low - and that they may well exceed 2,000.