Most of the 65 workers employed by Co Wicklow timber products company Woodfab, which was badly damaged by a fire early on Sunday morning, are to be laid off.
The company today contacted SIPTU, which represents around 35 of the employees at the plant in Aughrim, to inform it of the decision.
The company told the union that it had taken the decision with regret as a result of the fire and pledged to contact each of the affected employees directly.
It also said it would keep the situation under regular review and would keep the union informed of any further developments.
SIPTU has told the company it expects that the lay-offs will be done on the basis of seniority where appropriate, and has requested a meeting with management to discuss the present and future situations.
Reacting to the news, local Labour Party Councillor Jimmy O'Shaughnessy said the decision by Woodfab to lay off most of its staff would come as a huge blow to the area.
He said there was already significant unemployment in that part of Wicklow and Woodfab provided direct and indirect employment to several hundred people in the Aughrim-Rathdrum hinterland and the wider county.
The fire is being treated as accidental by gardaí.
Investigators could find no evidence of foul play or deliberate ignition after the blaze on Sunday morning.
The conclusion follows a forensic examination of the production line building by members of the Garda Technical Bureau and members of the divisional forensic team.
The exact cause of the fire has yet to be determined.
Gardaí have also found no evidence of a link between the fire at Woodfab and a small fire at a nearby derelict mill and a burning vehicle in the area at around the same time.
