Analog Devices, the semi-conductor company based in Limerick is looking for 94 voluntary redundancies out of its Irish workforce.
In a statement this afternoon, the company said the decision had been made by the company in an effort to manage costs in response to difficult market conditions.
In addition, the company announced its intention to close its facilities for three weeks during the Christmas holiday period, during which employees have been asked to take annual leave during this time.
Alastair Purdy, HR Director of the company's Irish operations, said the industry, which is traditionally a cyclical one, is experiencing a severe downturn aggravated by the attacks of September 11.
No improvement, he said, is expected in the semi-conductor industry until late 2002.
"At Analog Devices a key priority is the welfare of our employees," Mr Purdy said in a statement.
"For this reason, it was decided that it was necessary to take action at this time in order to manage costs and to ensure the long-term competitiveness of ADI's operations in Limerick.
We believe that the measures announced today are sufficient at this time to allow us to prudently manage costs during the current market downturn and to be in a position to take advantage of the business opportunities presented once business conditions recover.
Employees who opt for voluntary severance scheme will be eligible for six weeks pay per year of service plus statutory entitlements.
In addition extended medical benefits, enhanced pensions for employees over 55 and outplacement services will all be available to the employees concerned.
Ranked in the top three most dynamic semiconductor companies globally, Analog Devices has over 1400 employees at the wafer fabrication and product design campus in Limerick and at a new design center in Cork.