Alps Electric Ireland has confirmed between 30 and 40 people will be let go from their jobs over the coming weeks.
The Japanese-owned company employs up to 550 people at its plant in Millstreet, Co Cork.
Alps manufactures electrical components for the car industry.
A company spokesman said between 200 and 300 people were hired over the past two years to clear a backlog in customer demand worldwide.
He said these staff were specifically hired to catch up on orders and were aware their employment was short-term. However, he accepted, it is upsetting news for employees.
Staff were briefed at a meeting on site last week.
