Intel has ordered most of the 3,200 staff who work at its Leixlip plant to take two weeks of annual leave during the Christmas period so that it can shut down the factory.
Although a few staff will remain on site to maintain essential projects, a spokesman for Intel confirmed that the majority would be expected to take annual leave or unpaid leave during the period.
He said the decision reflected market conditions and would help the firm to reduce costs.
Workers will not be required to work between December 20 and January 6, and those who have used up this year's holiday quota must take it out of next year's if they want to be paid during the period.
An email was recently sent to all Intel's staff explaining the decision, and the spokesman said there had been 'surprisingly little reaction'.
Computer storage firm EMC introduced a similar measure at its Cork plant last year in order to reduce costs, but was subsequently forced to lay off 160 staff because of slower than expected growth.
