Snack food manufacturer Largo Foods is to cut 123 jobs at its plant in Co Donegal.
Largo, which bought Tayto from C&C for €62.3 million in September 2006, is to switch part of its production activities away from Gweedore to Ashbourne in co Meath.
The company said this afternoon it had to take this decision in order to cut costs, improve its competitiveness and sustain its business into the future.
Its fully automated plant in Ashbourne can produce high volume / low margin product more cost effectively, the firm said.
“As an indigenous Irish manufacturer, we face severe competition from global multinational companies who do not have the high cost base of Ireland. In addition, the weakness of sterling has significantly compounded the difficulties facing domestic exporters," said the owner and founder of the company, Raymond Coyle.
"It is difficult to export high volume / low margin product to the UK from our plant in Gweedore. However, we will continue to manufacture a range of high value products which we have developed internally and are selling successfully in Ireland and the UK and we intend to build on this in Gweedore," he added.
The company said it will offer of a number of positions in Ashbourne to current Gweedore employees.
