More than 60 jobs are being lost at Celtic Linen.
The company, which currently employs over 380 staff, says the redundancies will be split between its main operations facility in Wexford and its transport and logistics centres in Dublin and Cork.
Celtic Linen is citing the economic downturn as the reason for the 42 full-time and 20 part-time job cuts.
In March it announced 10 redundancies with the closure of distribution depots in Carlow and Ballinasloe.