Eighty-five people are to be laid off in the new year at the Wilo Pumps factory in Raheen in Limerick.
The company, which employs 98 people, has been located in Limerick for the past 23 years.
It manufactures pumps, motors, and plastic injection moulding for export to its sister companies in France, Germany, Korea and China.
The announcement was made after a meeting of staff this morning. The lay-offs will take effect on January 24th.
This restructuring on the manufacturing side of the business will not affect Wilo Engineering Ltd, which has a staff of 12.
