Toy manufacturer Hasbro Ireland today said it will temporarily lay off 34 of its permanent workforce as part of its regular seasonal adjustment to its workforce.
During this period some manufacturing of some product categories will be moved to lower cost countries, including China.
The company employs 419 people. A spokesman said seasonal layoff of temporary workers was standard practice.
"In this case, the workers were formally temporary who have become 'permanent' by virtue of their length of time with the company. But it is the same process the company uses every year."
Hasbro said it was anticipated employees affected by today's announcement would be recalled by May.
"We regret that we have to take this measure and we understand that there will be some hardship for employees affected," said the spokesman.
"We believe that the strategy we have adopted is the only viable option if we are to protect the long-term future of the plant and remain competitive."
Hasbro Ireland has been based in Waterford since 1977.
Elsewhere, Drogheda-based Irish Flavours and Fragrances announced it planned to lay off one third of its workforce. The food additive manufacturer said the 25 posts were axed after production was moved to the Netherlands.