Mayo-based company Homecare Medical Supplies is to make 80 staff redundant, following the loss of an important Health Service Executive contract.

The firm has been forced to axe 50 positions in Kiltimagh and 15 in Ballyhaunis, following the termination of a HSE contract for recycling of aids and appliances. A further 15 jobs will go at other Homecare centres in other parts of the country.

Fianna Fáil spokesperson on jobs Dara Calleary said the job losses come as a "terrible blow" to staff in the run up to Christmas.

“The loss of these jobs will unfortunately have a significant impact on the local economy, at a time when the East Mayo region can least afford it,” he added.

The job losses are understood to affect a large proportion of the workforce at the company.

The company supplies healthcare equipment to the HSE, hospitals and nursing homes.