Killarney is to lose 104 jobs as a result of a restructuring plan at the Sara Lee textile plant on the outskirts of the Co Kerry town.
The company today announced it would be concentrating on the high value-added market because of competition from countries with a lower cost base.
The news will come as another blow to the town which is expecting losses at two other factories in the town over the next month.
Labour's new Social and Family Affairs spokesperson and local TD Ms Breda Moynihan-Cronin said: "Today's announcement is yet another shocking blow to Killarney and South Kerry. Coming in the wake of the move of the ALPS electronics company to Millstreet and almost 60 job losses at Liebherr."
Last year the company cut 80 staff. Today it announced a further cut of 104 leaving a workforce of just 82.
The plant, which manufactures underwear, is situated on the site of the former Pretty Polly tights factory which closed in 1995 after employing nearly 800 people at the height of its production.
A spokesman for Sara Lee said: "We have recently completed forecasts for the year ahead and there is no foreseeable pick-up in the market for the basic, low-cost product which has been in decline since last year."
Local independent TD Mr Jackie Healy-Rae was instrumental in persuading Sara Lee to set up in Killarney after the loss of the Pretty Polly jobs. He told ireland.com today: "I’m very disappointed to see even one person made redundant there."
He said he was also concerned about the expected job cuts at the Liebherr manufacturing plant in the industrial park.
"I’ll be immediately going to the Government to see what they can do. We want to hold on to every job here," he said.
Ms Moynihan-Cronin said she would raise the matter with the Tánaiste, Ms Harney, and would be seeking the establishment of an employment task force for Killarney.
The company will enter discussions with employee representatives next week in an effort to agree a redundancy package.