Celtic Linen has announced plans to lay off 80 workers at its plant in Carlow town.
The first set of redundancies in Carlow will take place in June with the majority of jobs going in October. The company will retain only its transport division in the town from then on.
The company said it plans to reorganise and centralise its business processes to remain competitive in the light of "ongoing competitive challenges" in the industry.
"This will result in the consolidation of production, operation and administration in Co Wexford," it said.
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The company said it planned to build a new plant on its Drinagh site in Wexford town where it will relocate its operation in the county.