German manufacturer Kostal is to seek up to 60 redundancies at its plant in Abbeyfeale.
The plant, which makes electronic parts for the car industry, has been operating in West Limerick and Mallow since 1981 and employs about 1,000 people.
Kostal has a presence in more 20 countries, including Germany and Poland, and it has a strong presence in China.
The decision by Kostal Ireland to seek redundancies at Abbeyfeale is linked to a fall in anticipated demand from within the electric car industry and ongoing volatility in that sector.
The company is seeking voluntary redundancies.
An email circulated to Limerick staff on Friday said the challenges included declining demand for onboard chargers for electric cars.
Based on its current forecast data, the voluntary redundancies will involve 30 operators and 30 non-operator roles, but the number of operators is subject to change depending on market demand.
There is to be a 30-day consultation process involving unions and non-unionised workers.
Kostal’s management team said it would continue to explore future options for Abbeyfeale, and there was a continuing need for production activities there for the foreseeable future.
However with the level of market volatility, the company is under no illusion about the challenges, it also told staff.
The email to staff on Friday, reported by Radio Kerry, said Kostal would look to having a commercially viable future in Abbeyfeale, even if not the same shape and size as currently.
The company has been asked for comment.