Up to 45 jobs could be lost in Tralee, Co Kerry, at Tillotson, which makes carburettors for small engines.
The company said it was consulting workers on a restructuring programme aimed at securing as many jobs as possible. It currently employs 71 people.
Tillotson, which is located at the Clash Industrial Estate and has been operating in the town since 1972, is currently on a three-day week due to a downturn in business which it blames on competition from lower-cost countries, particularly China. It was formerly known as Borg-Warner.
It is the second recent jobs blow for Tralee, after an announcement late last year that 50 people would to lose their jobs at the Kerry Group-owned Denny meat plant.
