Shannon Development described the job losses at the Tellabs plant as "a severe blow" and promised to help workers find alternative employment.
Mr Kevin Thompstone, chief executive of Shannon Development, said there would be "an internal team to work with staff and management of Tellabs Shannon to assist in developing alternative options for those highly trained, talented and skilled people" who lost their jobs.
Shannon Development, he said, had worked closely with Tellabs since they move to the region in 1989 and this news "is a major disappointment for Shannon".
He said Shannon Free Zone had "remained relatively unscathed by the global downturn with job numbers growing steadily from 5,000 to 8,000 over the last ten years".
Mr Patrick Purcell, president of the Shannon and District Chamber of Commerce, said that with so many highly paid jobs involved, it will mean up to €30 million in lost wages.
"When we try to replace these jobs," he said, "Shannon Development and other agencies will be at a severe loss because of the poor communication between Shannon and Dublin and Europe which is now at its worst ebb for many years."
He said that this lack of air services out of Shannon is a major disincentive for attracting new companies.
Mr Tom McInerney, president of the Limerick Chamber of Commerce, said the loss of Tellabs was very regrettable but he added: "On the other hand, until now we have escaped relatively unscathed in this region, despite the dramatic downturn over the last 12 months."
The Mayor of Limerick, Mr John Cronin, said he welcomed the announcement that Shannon Development had set up a team to help the workers.
Mr Cronin also mentioned the success of the local group who came together after the collapse of the Krups factory in Limerick four years ago.
There are now 500 workers on the site which formerly employed 350 people.