Musgrave Retail Partners Ireland is to close its Galway depot at the end of June, resulting in the loss of 143 full-time jobs at the depot.
Workers were told of the plans at a meeting this afternoon.
Of the 143 employees at the depot, 55 are to be offered alternative employment at the company's other depots in Cork and Kildare.
The company's Managing Director Donal Horgan today said that 55 new roles will be created by the transfer of activity to Kilcock and their Galway employees will have first option to transfer into these roles.
'This is a difficult time for all our colleagues on this site and our focus will be on assisting them as much as we can.
'A 30-day period of consultation will commence immediately with our employees and their trade union representatives.
'However, where transfer is not an option, we are putting in place a significant outplacement support programme.'
The decision will have no impact on the Musgrave Wholesale Partners cash and carry operation, located beside the Galway depot.