Computer chip maker Intel is to up to 200 people redundant by the end of the year due to competitive challenges it is facing in the global marketplace.
It says the job cuts will be voluntary and will be made in its support services area and in its 'Fabs' manufacturing facilities in the Leixlip plant, Co Kildare.
Intel has been a poster boy for the Irish technology sector.
The company employs 5,200 in Ireland making chips for computers worldwide.
This development is part of an internal cost cutting.
But it comes at a time when many multinationals here are under more financial strain than before.
High costs and the weakening dollar against the euro are pressurising all US companies here.
Intel vice president Jim O'Hara said the company here needs to remain competitive and agile.
He said while the job cuts are very difficult it was essential that the company faced up to and responded to the challenges.
Mr O'Hara said the company's Irish operations have remained competitive to date despite increasing cost pressures.
He said the Irish operations continue to be a 'critical asset' for the company and the most effective way to ensure its success in the long haul is to benchmark 'aggressively' against global competition.
'Our reputation has been clearly established in this regard and we are well positioned to maintain this into the future', he said.
A spokesperson for the IDA said this is 'normal management action on staff restructuring' at Intel and is not a cause for concern.
The spokesperson also said the cuts are in response to competitive pressures at the site and the IDA does not believe its a cause for concern.
She said: 'It is not an indication of any slowdown in the economy and is not a sign of anything to come.'
ICT Ireland, part of employers group IBEC, said that in the overall scheme of things 200 jobs is small, but that Intel like any other company is facing competitive pressures, and the government, and employers need to work together to ensure job losses are kept to a minimum.
The package on offer to employees is comprised of six weeks pay for each year of service plus statutory entitlements.
