Eleven jobs are to be lost at Doolan Plant Hire outside Clara.
The majority of the company’s work is in the area of water maintenance and support for Offaly County Council.
Business owner Celsus Doolan explained that the company will not be carrying out work for Irish Water in the future however, due to some paperwork not being submitted on time.
It’s expected eleven of the company’s 17 workers will be let go late next month.
Reacting to news of the job losses Fianna Fail’s Barry Cowen said he’s disappointed for the workers involved.
“I think this is a perfect example of bad government decisions having a significant local impact,” he added.
“Not only has Offaly County Council had to hand over millions of euro in local assets to Irish Water and residents face charges later this year, we’re now seeing job losses on the ground.”