Oasis Ireland, which makes watercoolers and dehumidifiers, has confirmed it will be announcing an unspecified number of redundancies later in the week.
The US-owned company has been operating in Ballina for the past eleven years and employs 122 people.
A spokesman for Oasis Ireland told ireland.comthe redundancies were prompted by the global economic downturn.
However, he said the Oasis company was "well placed" for a return in global demand. "We just don't need the production right now," he added.
He dismissed reports that up to 70 staff would be targeted for redundancy, saying the figure would be substantially lower.
Staff at the Ballina plant are understood to have been briefed on the company's finances and the impending redundancies.
Oasis is the world's largest manufacturer of bottled water coolers.
