A meeting of workers at the bread-maker heard how the company simply could not compete any longer.
Management from the bakery’s parent company IAWS in Dublin revealed how the jobs had to be axed to ensure future financial stability of the company.
The majority of the job losses have come as a result of the closure of the company’s frozen bread section.
It is understood that some of the frozen bread operation will be transferred to the parent company’s other plant in Dublin.
The company says efforts are being made to save 65 other jobs in Donegal through redeployment to its other plant and through the possible sale of its fresh bread section.
It was revealed that the company, who also make the Cuisine De France range, had recently built a state-of-the-art plant in Clondalkin in Dublin.
It now appears that Gallagher’s geographical position may have turned against them in their battle to survive.
Chairman of the local parish council in Ardara, Stephen McCahill said the announcement was a devastating blow to the local community.
“It will have huge implications for everyone in Ardara and the surrounding areas.
“This amount of jobs to be lost in any community is huge and it will have a knock-on affect for everyone for miles around,” he said.
One of the directors of the company, Declan Gallagher, has admitted overseas competition is leading to a cut in the price of products.
The Tánaiste and Minister for Education and Skills, Mary Coughlan TD, has expressed her deep disappointment at the news of the decision by Aryzta to close their “frozen” production line.
She has had discussions with top company management both in Ireland and Switzerland and says she has been assured that every effort possible is being made to protect the jobs associated with “fresh” production.
The Tánaiste has also been in discussion with the Acting CEO of Údarás na Gaeltachta as well as the CEO of Enterprise Ireland. The company will be meeting with both state agencies tomorrow to discuss their plans and explore the opportunities that may exist to maintain employment in the company.
Minister Coughlan also said she will be ensuring that all relevant state agencies are involved in assisting those workers who are in the unfortunate position of losing their jobs.