Dubarry has announced today that some 40 jobs are to go at its shoe factory in Ballinasloe, Co Galway.
Dubarry is to transfer its manufacturing operations to its Portuguese plant in November.
The company, which has been based in for nearly 70 years, blamed high labour costs in the Republic for its decision.
The company headquarters will remain in Ballinasloe.
The Tánaiste and Minister for Enterprise, Trade & Employment Ms Mary Harney described the job losses at Dubarry as a serious setback for the community.
"I can't and won't make false promises to the people of Ballinasloe. But I can promise them that their town continues to be marketed by our development agencies for new investment as actively and as rigorously as any town in Ireland," she said.