Elan plans to cut around a third of its 900-strong Irish workforce as part of a restructuring aimed at ensuring the company's long-term survival.
The ailing drugmaker, whose shares have fallen by more than 95 per cent this year amid accounting worries, outlined a recovery plan yesterday involving the loss of around 300 jobs from its workforce in Dublin and Athlone.
It has also abandoned plans to develop the former GSI plant in Macroom, Co Cork.
The project, which would have cost $60 million (€61.1 million) over the next five years, was to have created 300 high-technology jobs.
Elan's new chairman, Dr Garo Armen, who yesterday set out the company's recovery strategy, said the planned contraction of the company's size was not consistent with developing the Macroom facility.
However, he denied the company's Dublin headquarters would be closed.
"We are downsizing for reasons that make business sense," he said.
The Tánaiste and Minister for Enterprise, Trade and Employment, Ms Harney, said she was "deeply disappointed" by the job losses and described them as a severe blow to Elan's workforce in Dublin and Athlone.
Ms Harney has asked Fás and IDA Ireland to get involved in retraining workers and the search for replacement jobs.
She said priority would also be given to Macroom, where the cancellation of the Elan project would come as "a serious setback to the local community".
Elan is embarking on a cost reduction programme, which will reduce operating expenditure by $300 million on an annual basis.
This will involve cutting 1,000 jobs from Elan's global workforce of 4,700 by the end of the year.
In addition to the initial 1,000 job losses, a further 2,100 jobs are expected to go as the company disposes of non-core businesses.
Meanwhile, Elan, whose chairman and chief executive Mr Donal Geaney stepped down last month, has started the search for a new chief executive.
Dr Armen said a search committee of board members had been formed and had identified seven candidates. It hoped to appoint someone in the next three to four months.
