Food company Tirlán, formerly Glanbia Co-Op, has announced a cost-cutting plan which could result in around 150 voluntary redundancies.
The company said the cost reduction programme is designed to enhance its long-term competitiveness.
"In order to secure cost savings, Tirlán has made the difficult but necessary decision to offer a voluntary redundancy scheme across the organisation," the company said.
"It is expected that approximately 150 roles may be impacted," it added.
Tirlán currently employs around 2,370 people.
The company said a combination of factors requires the Co-op to proactively manage its cost base.
"These include rising costs in areas such as energy, interest rates, wages and environmental compliance as well as a decline in milk supply volumes," the company said.
"Milk processing capabilities will remain unchanged, and Tirlán will retain the ability to increase milk processing capacity if there are changes in milk supply dynamics," it said.
"The cost savings achieved through this programme will position Tirlán strongly against future challenges and allow continued focus on product innovation and growth in value-added products," Tirlán said.
Reacting to the news, IFA President Francie Gorman said the cost reduction programme is very concerning and is a direct result of EU and Government policies.
He said that the dairy sector is contributing hugely to the economic and social sustainability of rural Ireland but margins are being squeezed by Government policies focussed on curbing production.
"The tightening of the existing Nitrates derogation, together with increased regulation and cuts to supports, are making life more and more difficult for the dairy and tillage farmers that supply Tirlán," he said.
"Today's announcement must be a wake-up call for the Government to focus on the economic well-being of the sector."
Meanwhile, SIPTU said it has requested an urgent meeting with the management of Tirlán.
"The review, entitled 'Project Mayfair’ by the business, will be the focus of our discussions with management. SIPTU representatives will seek to go through the review on a site-by-site basis with an emphasis on minimising any proposed voluntary redundancies while seeking to secure the future viability of the Co-op," said SIPTU Organiser, Terry Bryan.
"Our priority at this time is to protect the livelihoods of our members, their families and the local communities which economically depend on the Co-op’s activities."
