Two hundred and sixty-five workers are to lose their jobs in the latest round of redundancies at the Belfast shipyard, Harland and Wolff.

The company met its 386 employees on Monday to give them details of the redundancies, which will take effect from January.

Of the remaining workers, there will be 65 in design and technical services, 36 administration staff and 20 manual workers.

Without a doubt, shipbuilding in Belfast is dead

Drew Kane Senior shop steward

In a statement, the shipyard said it had entered into formal consultation with trade union officials about issuing a 90-day protective notice of redundancy covering 197 operators and 68 staff.

It was the intention to have the workforce reductions completed by mid-January 2003, the yard said.

But Drew Kane, chairman of the senior shop stewards, said: "It is going to be worse than we thought - without a doubt, shipbuilding in Belfast is dead."

Harland and Wolff said that while it was pursuing future business opportunities on a number of fronts in order to create a competitive company with a sustainable future it had been "unable to secure sufficient firm workload to maintain current employment levels".

The shipyard said it would focus on "an expansion of its technical consultancy services, which encompass the marine, offshore and structural engineering sectors".

The remaining 121-strong workforce is a far cry from the yard that built the famed Titanic liner and had 35,000 employees on its books.

Sir Reg Empey is concerned at job losses

Just a month ago, there were celebrations at Harland and Wolff as a new ship, the Hartland Point, was named.

Another ferry is also being built, but in the new year orders will run dry.

BBC NI business editor James Kerr said questions would now be asked about a rescue plan put together in the late spring that was supposed to create a lifeline and secure close to 400 jobs as a minimum.

"With hindsight, some may seek to raise doubts about the land deal that financed the plan."

Industry Minister Sir Reg Empey said news of the jobs blow was "extremely disappointing" given that the government had put so much effort into trying to save jobs at the yard.

Sir Reg said: "The business plan did offer hope, but there was never any guarantee that it would be successful and adverse market conditions have not helped."

He added: "The release of funds from the sale of the land gave the company a fighting chance of survival. The alternative would have been closure of the yard."

The shipyard once had a workforce of 35,000

The unions have asked for a meeting with Northern Ireland Secretary John Reid to lobby for repair work from the Ministry of Defence.

The jobs blow will leave little more than a skeleton workforce at the yard.

In recent years, Harlands has limped from crisis to crisis, shrinking with every one.

Sir Reg Empey met the shipyard's union leaders on Friday but there was nothing to indicate any fresh rescue plan to save the jobs.

Sir Reg is calling together a forum of business and community leaders to discuss a recent spate of redundancies, particularly in the technology sector.