38 full time equivalent jobs are to be lost at the Largo foods plant in Gweedore, Co Donegal.
The company, which produces snacks such as Tayto and Hunky Dorys crisps is automating its packing operation in Donegal.
Managing director Raymond Coyle said the move, which involves a €3.7m investment in research and development and machinery, is part of a wider plan to ensure the future of the plant.