Up to 150 workers are to be made redundant within three months at the giant Analog Devices plant in the Raheen industrial estate.
The announcement follows the midweek loss of 90 jobs at the Shannon-based company, Mohawk Europa Ltd.
The technology-based company employs 1,300 and the cuts are to come into effect by the end of November. The company is outsourcing more work to low cost labour countries.
Chief executive Maria Kelly said she was confident about the long-term future of Analog Devices in Limerick due to their investment in expanding research and development at the facility.
Ms Kelly said: “They have invested €100 million in developing their Limerick plant.
“While they may employ less people, they will have much higher quality jobs with higher salaries and that is where our economy is going.”
She said she did not know the nature of the jobs that would be lost.
“A job is a job but, in the long term, I am very confident in the future of Analog due their investment here. Sometimes, a side effect of having multinational companies is they do cost restructuring which results in some jobs being moved as happened with Dell,” said Ms Kelly.