Staff at the SLM Eire Teo facility in West Donegal were informed this afternoon that liquidators had been appointed to the digital marketing centre.
The news came at around 2pm after they were notified by the company's owners who are based in Manchester.
Local Councillor Micháel Cholm Mac Giolla Easbuig says it's terrible news to come out of the blue, just before Christmas:
The Gweedore based company closed with immediate effect with workers only finding out an hour before doors were shut on the premises.
It's understood the company had originally planned to expand and create 125 jobs in total at the Donegal plant.
The expansion plan had been supported by Udaras na nGaeltacht.