The ailing Belfast shipyard Harland & Wolff has announced the loss of 144 staff, reducing its core workforce to 530.

The company said 100 employees with steelwork trades and 44 other staff would be laid off due to a lack of orders beyond its current work for the British Ministry of Defence.

In a statement, H&W said the redundancies were "necessary" because the workforce and the shipyard would soon become "under-utilised".

"The company has sought to delay initiating action on redundancies as long as possible, not least as individuals' livelihoods are at stake.

"We have been in consultations with the trade unions since November 2001 when the potential under-utilisation of the workforce was initially identified.

"Those employees affected will be notified shortly, with the first tranche of individual notices following thereafter. This is expected to amount to some 85 employees, comprising 75 operators and 10 staff."

A company spokesman, however, held out the possibility of an eventual increase of the workforce to 700 if the company's restructuring plan is approved.

Speaking for the GMB union, Mr Bobby Carson was "disappointed, but not surprised" by the redundancies.

Talks regarding job cuts had been going on since last November against the backdrop of a threat of complete closure, he added.

"However, the rescue plan does present a certain degree of hope. While we are disappointed to see the end of the steel sector at H&W, the plan does present a chance for an increase of the core workforce.

"We expect Fred Olsen to play a major part in demonstrating its commitment, not just to the workforce, but as a way to send out a message to the marketplace that this is the only game in town.

"We believe the rescue plan is focusing on lucrative niche markets and we hope any decision taken on it will not be a party-political one but one that will maintain a major engineering facility in east Belfast and safeguard a shipbuilding presence in the city," he added.