PALLAS Foods in Newcastle West is set to lay off 65 staff over the next six months as part of what is described as a “review of its distribution operations”.
The job losses are as a result of the opening of a new distribution centre in Dublin which is due to come on stream in April.
The company will be offering a voluntary redundancy package to workers in its warehousing operation.
Executive director Dan Geary said the opening of the new distribution centre would result in the transfer of “significant volume away from Newcastle West”.
“Unfortunately, this situation involves a risk of redundancies in our distributions operation,” Mr Geary said.
However, he added that there would be opportunities for redeployment across the group.
“While redundancies are regrettably unavoidable in this case, measures announced today combined with the forthcoming opening of our Dublin Distribution Centre, significantly enhances our distribution reach across the entire island and provides improved value and offering to our customers,” he said.
Mr Geary stressed, however, that “Newcastle West remains very important to the growing Pallas Foods business”.
“In addition to being one of our key distribution centres, Newcastle West remains our corporate headquarters. We have recently made a significant investment to base the group’s shared services centre here, which includes the functions of finance, procurement, IT, call-centre and support services.”
The food service distributor employs about 550 people in Newcastle West and across the country.