Waterford Wedgwood says to axe 490 Irish jobs

DUBLIN Nov 21 (Reuters) - Waterford Wedgwood WTF_u.I confirmed on Wednesday it was slashing 490 jobs at its Irish crystal plant and outsourcing production in a bid to cut costs. The move, which had been expected after widespread speculation in the Irish media, is part of a wider cost-cutting programme across the luxury goods group's operations worldwide that will result in the loss of around 1,400 jobs in total.

The company, which has been struggling to counter a prolonged slump in demand for its luxury tableware, said that while it regretted the job losses at its factory in the southeastern county of Waterford, the move was necessary to secure the future of the remaining 510 employees.

High costs and unfavourable currency movements had reduced the plant's competitiveness by tens of millions of euros over the past five years, Waterford Crystal's chief executive, John Foley, said in a statement.

"I am confident it can be re-energised to achieve sustained profitability," Foley said.

Waterford Wedgwood, which owns china brands such as Wedgwood, Rosenthal and Royal Doulton as well as Waterford crystal, relies on the United States for about 40 percent of group sales.

Chaired by Irish billionaire Tony O'Reilly, the company closed another plant in Ireland two years ago and has been outsourcing production to countries with lower manufacturing costs such as Slovenia, Romania and Brazil.

O'Reilly and his brother-in-law, Deputy Chairman Peter Goulandris, have repeatedly tapped shareholders for funds and injected large amounts of their own money into the firm in a bid to revive its fortunes.

Its shares closed nearly 5 percent lower at 0.02 euros on an Irish bourse .ISEQ down nearly 4 percent overall. (Reporting by Kevin Smith; Editing by Paul Bolding)