30 jobs are to go at the Oatfield Confectionery factory in Letterkenny.
Highland Radio News has obtained a letter circulated to staff today by the company's board of management confirming the job losses.
In the letter the company says that it is with regret that they have to transfer the 'boiling production' from Oatfield in Letterkenny to its sister company Tilley's in the UK
The letter states the transfer of the production will result in the loss of 30 jobs.
It says the decision follows a detailed strategic review of all the operating costs of the business.
The letter states that in recent years Oatfield has struggled to maintain profitability and blames rising manufacturing costs for the decision to move production to the UK.
It is understood 15 staff will be retained in Letterkenny to continue the company's toffee production.
The transfer will take place in mid October with company stating that it will now work with unions on a financial package and a range of support measures to help all affected staff.