Lakeland Dairies has announced 68 redundancies at its processing facilities in Monaghan.
It confirmed a plan for the adjustment of processing activities on its site.
In a statement, the company said some redundancies will be necessary as some operations will be ceased or transferred to other processing locations.
Of the 130 jobs in Monaghan, there will be 68 redundancies while some staff will be redeployed.
Prior to the merger of LacPatrick Dairies and Lakeland Dairies, the Monaghan site had significant and recurring losses.
"After careful consideration, the Board has approved this plan for the Monaghan town site which will reduce operating costs while providing for the continuation of strategic units for the business," said Michael Hanley, CEO of Lakeland Dairies.
"Arising from this adjustment of operations, it is regrettably the case that a number of redundancies will be required in Monaghan and we will enter into consultation to discuss the roles that will be affected.
"We will also be providing details of any redeployment opportunities available in other parts of the Lakeland Group. Of the 130 jobs in Monaghan, there will be some 68 redundancies on the site while some will be redeployed elsewhere within the Lakeland Group.
"Lakeland Dairies processes over 1.85 billion litres of milk annually and allocates this milk as flexibly and profitably as possible to different sites and into different product areas which are in the highest market demand, yielding the highest milk price, at different times throughout any given year.
"While this development is difficult for everyone concerned, it is necessary to ensure we operate our business in the most efficient manner. It has been the core strategy of Lakeland Dairies to ensure that all sites are run as profitably as possible to ensure we are well-positioned to meet the demand of a competitive global dairy market while protecting the future of our 3,200 farm families."