Brewer and healthcare firm announce 250 job cuts

Up to 250 jobs were axed today as both a global healthcare firm and brewer culled staff numbers.

Multinational Baxter Healthcare revealed it would lay off 150 workers over the coming year in Castlebar, Co Mayo, while a further 50 temporary contracts would not be renewed.

Elsewhere, cider maker Bulmers announced plans to axe 50 workers from a manufacturing plant in Clonmel, Co Tipperary, by Christmas.

Politicians described the cuts as a shattering blow to the rural towns.

Baxters claim the drop in the workforce is driven by the global economic downturn, the subsequent impact of European healthcare cost-savings measures and the ongoing need to improve our cost competitiveness.

Pat Gallagher, general manager, said the decision was a necessary step to secure the long-term viability of the operation, which had a 1,100 strong workforce.

“As an organisation, we are very proud of all that we have achieved over the last 38 years,” he said.

“We have a very committed and engaged workforce totally dedicated to providing products and services that save and sustain thousands of patient’s lives every day.”

Fine Gael’s John O’Mahony said his thoughts went out to the workers in Baxter Pharmaceuticals and their families.

“At a stroke of a pen, the effect of the jobs announcement two weeks ago has been wiped out,” he said.

“Baxter has been a wonderful employer for 30 years and the loss of these jobs will be keenly felt everywhere in Mayo.

“That 200 families will receive this devastating news in the run-up to Christmas is heartbreaking.

“Every effort must be made to find each and every worker a new job and I am calling on the IDA to get involved immediately.”

Meanwhile, management at the Bulmers facility in Co Tipperary blamed the fall in sales of cider in pubs and the rise in consumers heading to off-licences on the decision.

Its cost reduction and reorganisation programme, which the company claims will secure 220 remaining jobs, is expected to be complete by December.

Bulmers general manager Paul O’Sullivan said: “It is with regret that we have to commence this programme of job cuts.

“The combined impact of a dramatically weakening consumer environment and the continued migration of cider volumes from the on to off trade channel has adversely impacted our business in Ireland.

“It is therefore an imperative that we reduce our fixed cost base in Clonmel, thereby ensuring that our products are produced at the lowest cost, whilst maintaining both quality and excellent customer service.”

Local Fine Gael Tom Hayes said the area already suffered from high unemployment, with some 9,270 people on the live register in September.

“This is terrible news for the staff in Bulmers, particularly when the lay-offs will be imposed in the run-up to Christmas,” he said.

“This development will merely add to those numbers.”

Labour Senator Phil Prendergast maintained that failure to regulate executive pay was forcing people out of work.

“The lives of 50 people and their families have been thrown into chaos while the company’s three top executives receive enough money to pay all these workers and still have millions left over for themselves,” he claimed.