40 of the 80 workers at the Dubarry shoe factory in Ballinasloe in Co Galway are to lose their jobs.
The company has announced that it is to transfer its manufacturing operations to Portugal where it already has another plant. The move will take place in November.
Dubarry, an Irish owned company, has been in Ballinasloe since 1937. At peak periods it employed a workforce of over 200. It blames 'high labour costs' in Ireland for its decision to re-locate its entire production line to Portugal.
The company headquarters, as well as its product development, marketing and distribution departments, are to remain in Ballinasloe.