The US computer games giant Blizzard is to axe 200 jobs from their Irish operation.

The news shocked both the Government and the IDA last night given that the computer games industry is globally enjoying booming sales.

Blizzard Games is to seek 200 redundancies from their hi-tech centre in Blackpool in Cork.

The firm currently employs almost 900 staff at the facility.

The news came just three years after Blizzard confirmed a massive expansion of its Cork centre with the creation of 500 jobs.

Blizzard ranks as one of the world's leading manufacturers of software for entertainment and games usage.

The firm opened its Cork complex as a European customer support centre in 2007 and employment soared from an initial projection of just 100 jobs to almost 900.

Its major 2009 expansion was supported by the IDA and launched by then-Taoiseach Brian Cowen.

Cork TD Ciaran Lynch (Lab) last night said the news came as an enormous blow to Cork and Ireland.

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"The greatest shock is that these job losses appear to be coming from a firm in an industry that is booming and would have been expected to expand and create more jobs," he said.

Mr Lynch said the news was a bitter blow coming just 48 hours after Cork celebrated 500 biopharmaceutical and construction jobs from a €330m investment by US firm Eli Lilly.

Blizzard is best known for its best-selling series of games, 'World of Warcraft'.

One game in the series -- 'Wrath of the Lich King' -- was the fastest selling PC game in history. Another best seller developed by the firm is 'Diablo'.

Over 12 million people worldwide subscribe to the 'Warcraft' series -- and the Cork centre was able to provide support, advice and product information in 25 European languages.

Last night, Blizzard confirmed that the 200 Irish job losses are part of a global downsizing that will see 600 jobs axed.

The firm stressed that the majority of the job losses will be in non-game development areas.

Blizzard said it was now in consultation with staff over the redundancies.

"Constant evaluation of teams and processes is necessary for the long-term health of any business," Blizzard chief executive and co-founder Mike Morhaime said.

Irish Independent