Employees at Dairygold Co-operative were told yesterday that the company is seeking to make 500 staff redundant before the end of the year.
The company, which has its headquarters in Mitchelstown, Co Cork, has given the staff until Monday to apply for voluntary redundancy. It said that if it did not get the required number, it would seek involuntary redundancies on December 17th.
While a redundancy package has been negotiated and agreed between the company and the unions and recommended for acceptance, yesterday's announcement had not been expected before the end of the year.
Job losses of 1,500 from the 3,400 staff worldwide had been expected but not this side of Christmas.
It had been indicated by the chief executive, Mr Jerry Henchy, that the rationalisation plan would be prepared by the end of the year.
Turnover at Dairygold, one of the three largest dairy co-operatives in the State, was €989 million last year, up €25 million on the previous year, but operating profits of €3.7 million were 80 per cent down on the previous year's returns.
Workers were told of the job-loss timetable in a newsletter issued yesterday afternoon. It said the job losses were "absolutely essential for Dairygold's survival".
"The problems and challenges facing Dairygold must be addressed without delay, and everybody in the business, at all levels, must enthusiastically play his or her part to put the business firmly back on the road to recovery.We must look to the future and 'fix' the business. If there are areas which we cannot fix, the options are stark. It's either: Fix it. Outsource it. Shut it or Sell it."
The workers were told the redundancy programme included the outsourcing of transport services, and appropriate cost reduction at all levels right across the business.
It is understood that there are 170 transport employees in the company's plants across Munster, and Dairygold will be seeking to contract those jobs out.