Grant Engineering in Birr, Co Offaly, has let go 40 seasonal workers from its workforce as a direct result of the decline of the building sector.
The job losses took place over the last six weeks.
A spokeswoman for the company confirmed today that these workers had been employed on a seasonal basis over the last two-year period but some of the staff let go could be re-employed in future if business requires it.
The company says this has happened before.
The company, one of the largest manufacturers and suppliers of domestic oil-fired boilers in Ireland and the UK, previously employed around 270 people at its factory in Crinkle in Birr.
The business also leads the way in oil-fired condensing boiler technology and other heating products.