Intel, which employs nearly 5,000 people in Ireland, chiefly in the west Dublin commuter town of Leixlip, has claimed that it had no choice but to trim its Ireland operations because of lower-than-expected demand for its new generation of computer microprocessors.
It also cited high labour and utility costs in Ireland as factors.
Earlier this year, Intel chiefs announced cutbacks and factory closures worldwide, but only called for 300 voluntary layoffs in Ireland.
But now, bosses will enforce mandatory layoffs for the first time since establishing a base in Ireland more than two decades ago.
"The affected employees will be given the same severance package that was on offer in the voluntary programme earlier this year," Intel said.
"At this difficult time, Intel management will be working closely with all affected employees to provide support and assistance."
The opposition Labour Party warned that the latest Intel job cuts would cost the government the equivalent of 10 million euros over the coming year in lost income taxes and higher welfare costs.
Labour TD Emmet Stagg said: "Given the fact that more than 200 jobs have gone as a result of voluntary redundancy programme earlier this year, it will mean that more than 500 well-paid jobs will have been lost at the plant."
Mr Stagg pointed out that the loss of spending power will also be a serious economic blow to the surrounding area.
"We simply cannot continue to afford the loss of jobs at this rate," Mr Stagg stressed.
Unemployment in Ireland has doubled over the past year to nearly 12 per cent - second-worst in the eurozone after Spain - amid a burst property bubble, banking crisis and runaway budget deficit.
Ireland, which for decades attracted foreign high-tech firms with low tax rates, has suffered a string of job cuts and closures this year, including at Intel's biggest customer in Ireland, Dell Computers.
The world's number two maker of laptops announced in January that it would move its major European production line from Ireland to lower-wage Poland, slashing its 4,300-member Irish production workforce by half.
Morning Star - 22.07.09
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