Highland Radio News has learned that up to 25 jobs could be lost at the Medisize plant in Letterkenny.
The company, based on the High Road, called staff to a meeting yesterday outlining their plans.
Medisize employs around 170 staff at its plant in Donegal producing products for the health care market. The company employs over 600 people in a number of locations across Europe.
Yesterday staff were called to a meeting and told that between 18 and 25 people will lose their jobs in Letterkenny with the consultation process with unions set to begin in January.
It is understood that two thirds of the job losses will be on the production line with the remainder being office staff.
As part of the process there is expected to be the offer of voluntary redundancy.
This afternoon the company confirmed there would be some job losses but declined to give a figure.
In a statement it says the necessary restructuring will improve its competitiveness and help secure future business in the Letterkenny plant.