Guinness maker Diageo yesterday shocked workers with news that 107 jobs are to be lost including 95 redundancies at St James's Gate.

A further 12 jobs will go at two locations in Belfast -- administrative offices and a manufacturing and administration plant.

The job losses will be in support functions, sales and marketing rather than manufacturing.

The company has promised to consult staff to get as many redundancies "as possible" on a voluntary basis.

Diageo said the job cuts were necessary "to maintain a sustainable competitive business in Ireland" as part of a global restructuring programme.

It said it planned to "reduce costs and improve efficiencies" due to the global economic downturn.

A spokeswoman said the cuts were part of a €111m global cost-saving plan that was announced at the group's first-half results last February.

She said it was separate to plans to move part of the Dublin city centre operations to a new super brewery in Kildare and the brewery on Thomas Street, cutting production at St James's Gate by a third.

Plans for the €650m investment in Leixlip, Co Kildare, have been under review since January. A further 250 jobs are set to go due to the closure of two breweries in Kilkenny and Dundalk by 2012, following a review of the group's brewery operations last January.

"Today's announcement to reduce employment was extremely hard to make and follows months of careful analysis and consideration," said Diageo Ireland chairman Brian Duffy.

"We fully appreciate the significant impact this will have on our employees and their families. We will work closely with our employees and offer them every practical support through this difficult time."

Labour TD Mary Upton said it was sad to see workers who had worked all their lives at the company being let go as Diageo launched a major ad campaign to celebrate Guinness' 250th anniversary.

She said workers had "every right" to ask why the jobs were being cut when the drinks manufacturer enjoyed €200m profits last year and over €1bn in the last four years.

"The announcement by Diageo that they are to shed over 100 jobs, including 95 at headquarters at St James's Gate, will be very worrying to everybody associated with the company," she said.

"Guinness has been a major employer in the area for generations and has had a presence there for almost 200 years. The company's manufacturing and management facility is a major economic driver for the south inner city, and any diminution of this can only be bad news for the area and for the entire city."

Diageo's half-year results were weaker due to a slowdown in sales across Europe. The company employs more than 22,000 people worldwide, including over 2,000 in the Republic and Northern Ireland.

Fine Gael TD Catherine Byrne urged Diageo to clarify if other jobs are at risk at St James's Gate. "Now, despite enjoying increased profits, they are intent on cutting their workforce by 5pc and the management in Diageo gave no indication as to how it will happen and how many other jobs may be at risk," she said.