Taoiseach Bertie Ahern has re-iterated his concerns about the impact of the US high technology slump on multinationals based in the Irish Republic.
Ahern said last week that technology is going through "a dodgy period" and extra government vigilance will be needed to protect the economy.
He has ordered a review of the number of workers currently being brought in from abroad. Previously, the government had looked to relax restrictions on immigration because of skills shortages. Ahern now says that he would like to see employers making the maximum use of Irish workers.
Ahern spoke out as chipmaker Intel and PC manufacturer Gateway, two of the country's flagship inward investors, announced job cuts.
Intel aims to make 170 redundancies at its plant in Leixlip, County Kildare, where it employs 3400 staff. At Gateway, which employs 900 in Dublin, further job losses were described as "inevitable", and the company is now reviewing whether the plant should remain its European headquarters.
As the Intel cuts became public, Ahern recalled that: "This time last year, the people from Intel were in my office asking how I was going to provide the skilled workers for the vacancies they had. I'm not criticising them for that, but [the move to cutting jobs] shows how quickly things can change.
"The enormous growth achieved by these companies in the last four or five years is being hauled back. They're into a dodgy period, as you can see from looking across the ICT stocks, and it's one I'd be worried about. We have to be cautious and careful in how we manage the situation."
The Intel hopes that it will be able to achieve its redundancies on a voluntary basis. A spokesman said that while the company did not expect further job losses, there could be no guarantees.
Those opting to leave will be offered a minimum of four months' pay, and up to a maximum of a year's pay, depending on length of service. Intel is also offering an additional IR£3000 (£2330) per worker, which can be spent on further education or travel.
The redundancies, the first in Ireland by Intel, follow a range of cost-cutting measures introduced by the company, in response to the slump in market demand for computer chips. The staff's half-year bonus has been halved and workers were offered two weeks' additional unpaid leave. The company has also considered closing Leixlip for up to three weeks.
Intel halted construction work on the $2bn Fab 24 plant at Leixlip earlier in the year, in another economy drive, but a spokeswoman insisted the company remains committed to the project and hopes "to restart construction early next year".
At the Gateway plant in Clonshaugh, Dublin, "everything is under review", according Irish MD Mike Maloney. It has been the company's European headquarters since 1993, supplying PCs to Europe, the Middle East and Africa, but a combination of plummeting sales and rising Irish wage costs had forced the review, Maloney continued.
Some 200 jobs have already been cut at Gateway in Dublin this year and further losses are certain, but the major worry is that the company may decide there are other, less expensive locations for its European headquarters. The review is expected to be completed by the end of next month.