Shoemaker Dubarry is to reduce its Irish workforce by half in Co Galway as manufacturing production moves to Portugal.
Dubarry employs 80 people at the factory in Ballinasloe but will cut that number by half.
Tánaiste Mary Harney described the news of job losses at Dubarry as a serious setback for the entire local community.
The Tánaiste admitted a tough job was in store to find a replacement industry. “Attracting new investment to Ballinasloe is not proving easy. I can’t and won’t make false promises to the people of Ballinasloe.
"I can promise them that their town continues to be marketed by our development agencies for new investment as actively and as rigorously as any town in Ireland.”