Sources have told Derry Now that 116 redundancies are being proposed at Seagate plant in Springtown.
A source said the estimated job losses is about 7% of the workforce.
Aontú Ballyarnett councillor, Emmet Doyle, said: "Speaking to workers I’ve been told they believe the brunt of any redundancies will be in Asia and America.
"Whilst 116 jobs is a blow to the local site, I’m told these may be filled by voluntary redundancies from across the site rather than compulsory lay offs.
"The company is engaging in a consultation process over the coming weeks to identify the final numbers with staff.
"This is why it is crucial a union is recognised at Seagate so workers can have their say about the sites future and any global restructuring plans.”
Subscribe or register today to discover more from DonegalLive.ie
Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.
Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.