Dublin's Abbey Theatre is to shed 25 jobs in an attempt to overcome the difficult economic climate.

The decision follows a review of the theatre's operations and has been made in light of reduced funding and a tougher marketplace.

Staff are understood to have had a meeting with management at which they were told that the 25 positions are to go.

It is still unclear which types of employees will be hardest hit by the job cut-backs.

Senior management, under the guidance of director Fiach Mac Conghail, carried out a lengthy examination of working practices at the theatre before reaching their decision to reduce staff numbers.

The current economic climate, a reduction in funding from the Arts Council, and uncertainty over any future three-year funding agreement have been blamed for the need to lay off employees.

Mr Mac Conghail has said that the job losses are regrettable but were needed to protect the future of the national theatre.

He said: "Our decision to seek redundancies is extremely regrettable as the Abbey has a highly skilled workforce that has contributed enormously to the success of Irish theatre over the decades.

"The theatre itself is now a well-managed organisation and we are not currently in deficit. However, the times we are living in compel us to take action sooner rather than later to avoid an otherwise inevitable financial crisis in the coming years."

He added: "Our goal now is to enter into negotiations with all employee representatives and we'll do so in the spirit of trying to save jobs and secure the future of Ireland's national theatre."

It is understood that a consultation process between management, staff and the trade unions is now underway.

Despite increased competition from other entertainment outlets, audiences at the Abbey increased by 9pc between 2006 and 2008.

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In that period, 32 productions were staged, including seven world premieres and four Irish premieres -- among them Conor McPherson's The Seafarer and John Patrick Shanley's Doubt.

Recent productions include Three Sisters by Anton Chekhov, An Ideal Husband by Oscar Wilde, Happy Days by Samuel Beckett, The Resistible Rise of Arturo Ui by Bertolt Brecht and The Playboy of the Western World, in a new version by Bisi Adigun and Roddy Doyle.

This year the Abbey will get €8.35m in state investment while pumping around €40m into the economy.

kdoyle@herald.ie

- Kevin Doyle