Up to 100 employees of Honeywell Turbo Technologies in Waterford City are to be made redundant.
Talks with the Technical Engineering and Electrical Union are due to begin shortly over the proposal to cut between 80 and 100 staff by the end of the year.
The company manufacturers performance enhancing systems for engines and currently employs 530 people.
Local Labour TD Brian O'Shea said the redundancies were of "very serious concern" locally.
He called on the Tanaiste and Minister for Enterprise Mary Coughlan to ensure that every assistance is given by the various state agencies so that the company can adapt to the changing market conditions.
"Honeywell has been operating for the best part of 30 years and with its 600 or so jobs, has been an important employer in the light engineering sector," he said.
"Announcements such as this highlight how important it is, when it comes to the economic development of the region, that Waterford Institute of Technology is upgraded to University Status, so that local research and development capacity is enhanced, and so that a wider range of foreign direct investment and indigenous investment can be attracted."