Telecoms firm Telefónica Ireland is seeking to cut 120 jobs from its 1,100-strong Irish workforce.

The company, which operates under the O2 brand, said the job cuts would be on a voluntary basis.

The decision was made after a review of the business, which found that there was a need to reduce costs and cut employee numbers.

Telefonica said the “difficult decision” had been taken to deal with the ongoing challenging market conditions.

“In responding to these challenges the company is making changes to processes and operations to drive greater efficiency while maintaining the service it delivers to customers,” Telefonica said.

Employees must now be consulted on the plans. Those working in the retail stores and customer care - about 450 people - are precluded from applying.

Staff with over two years of service are being offered six weeks pay plus two weeks statutory redundancy entitlement for each year of service. Those with less than two weeks with the firm will be entitled to six weeks per year of service if their application is accepted.

The move comes only a matter of days after Vodafone Ireland said it was moving its mobile call centre operation, based at two centres in Dublin and Dundalk, from Irish firm Rigney Dolphin to Newry-based Teleperformance. Some 26 Vodafone jobs and 290 contract roles currently with Rigney Dolphin would transfer to Teleperformance under the move.

Although the network said no jobs would be lost as a result of the move, staff said they had been told they would have to move to Newry or Dublin.