Carphone Warehouse is to close its 81 stores in Ireland with immediate effect.
The company said the changing way customers buy mobile devices was the reason for the decision. As a result of the decision, there will be 486 redundancies.
Stores offering mobile services have remained open during the lockdown but Carphone Warehouse said footfall has reduced significantly.
A statement from Dixons Carphone said it has made the difficult but necessary decision to close Carphone Warehouse in Ireland, in line with its decision to close all standalone Carphone Warehouse stores in the UK in 2020.
"Customers are changing the way they buy mobile devices and connectivity, replacing their handsets less often and buying them separately or as part of more flexible bundles."
"Although these changes in behaviour were anticipated, they were expected to occur over a longer period of time. However, the change in shopping behaviours has been accelerated by the pandemic."
The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, described the closure as a "major blow" to employees.
Mr Varadkar added the Government will make all necessary State assistance available to the workers and "help them find new employment, education and training opportunities as soon as possible."
“I know many high street retailers have been under pressure for some time now, as consumers move online - a shift which has been accelerated by the pandemic and I understand that this has contributed to the Carphone Warehouse’s decision today.
Government is working in a coordinated way, through the Retail Forum, and has committed unprecedented levels of financial aid to support retail businesses through these exceptionally difficult times and will continue to do so," he said.
Carphone Warehouse entered the Irish market in 1996 with the opening of their first store on Grafton Street in Dublin. It was an immediate success given the rapid growth in mobile phone use and the company's practice of offering devices and contracts from different providers.
Following this morning's announcement, the company said they will continue to sell mobile handsets and accessories through its Currys PC World stores.
Carphone Warehouse said the decision to close immediately was taken because footfall in their stores is down significantly. "We don’t expect many customers to sign new contracts with us during this time; our stores will therefore close immediately."
The company said customers with vouchers can exchange them for Currys PC World vouchers.