Workers at Dairygold Co-operative have been told by chief executive Mr Jerry Henchy that losses at the company would rise to €26 million by 2007 unless 1,500 jobs are shed.
In a special edition of the group's Employee News, distributed to the staff, the chief executive warned of tough times ahead unless there is remedial action at the company where profits dropped from €25.2 million last year to €4.8 million.
A joint negotiating forum, involving the company's unions and management, has already been in negotiations to agree a redundancy package for the 1,500 jobs that have been targeted to achieve profitability.