Bord na Móna has said that 105 seasonal employees are to lose their jobs as a result of this year's poor peat harvest.
A further 90 staff are to be put onto short-time working, while there will also be redeployment of some full-time staff to generate cost savings.
Staff were informed of the changes this morning.
The move follow the summer's record-breaking rainfall, which severely affected Bord na Móna's peat harvesting operations.
In a statement, the company said the peat harvest is now 37% of the amount expected for 2012, which means it is the worst ever harvest.
The company said it is unlikely that the shortfall can be recovered in what remains of the harvesting season, which typically lasts from May to September.
As a consequence and in order to mitigate resultant losses, Bord na Móna said it had prepared a contingency plan that it intends to implement over the coming months.
The company said the plan includes "measures aimed at managing current peat stocks, revenue increases and cost control initiatives, both pay and non-pay".
The result will be that 105 seasonal employees will not be employed in the company's feedstock business over the winter months.
To offset this, the company will redeploy some full-time employees to the feedstock business, predominantly based in the Midlands.
Bord na Móna said this redeployment has already commenced and will continue until March 2013.
It is also introducing a short-time working initiative that will affect approximately 90 employees, which is expected to commence at the start of October and continue until end of March 2013.
The company has assured customers that it will have adequate peat supplies to continue to supply them.