Almost 50 jobs are to go at a compact disc manufacturing plant at Youghal in East Cork and further redundancies are not being ruled out.
The Mastsushita plant is one of Youghal's biggest employers. A joint venture between Panasonic and Eastman Kodak, it is involved in the manufacture of re-writable compact discs.
The company has blamed its difficulties on the flooding of the market with re-writable CDs and a consequent price collapse.
Company executives are attempting to re-structure the business to save the remaining 200 jobs.
IDA Ireland has invested almost £5m in the plant since 1996 and IDA sources say some of this money may now be clawed back.
