Pre-Christmas job losses are planned at the Tipperary operation of drugs giant Merck, as it moves to shed 4,400 workers worldwide. However, the company said it expects the lay-offs to be "relatively minor" at the Ballydine plant, which employs 450.
Merck, the world's third-largest drugs-maker, hopes to secure the bulk of redundancies by the end of year, although cost-cutting may extend into 2004.
The job losses are to be spread evenly across the 27-year-old Irish operation - part-time and temporary staff will not be singled out, the company said.
Plans to cut about 3,200, or about 5 per cent, full-time staff and 1,200 temporary staff were announced as global revenues fell by $750 million (€634 million) in the third quarter.
The job cuts will save about $250-$300 million annually in payroll and benefits
But some analysts have cast doubt on Merck claims that it is reducing overheads to counter lower-than-expected sales and have suggested the company is preparing itself for a merger.
Merck has also announced it will limit wholesalers from stockpiling its drugs which, in combination with the cost of the job cuts, will cause its full-year earnings to fall short of estimates.
The company said: "We can confirm that the announcement by our parent... of a reduction of approximately 3,200 permanent jobs and 1,200 contract or temporary employees worldwide will have an impact on the company's operations here in Ireland.
"However, we are confident that the impact will be relatively minor and that the Ballydine manufacturing plant will continue to be a key site for the company's manufacturing division."
