Published Thursday, 26 May 2011
It is understood Stream International will be closing their operations in August and that remaining staff have already been put on 90-day redundancy notice.
The company provides technical support and customer service to technology companies.
It has been based in the city for 15 years and at one time employed up to 1,000 people.
SDLP Foyle MP Mark Durkan has expressed his regret at the news and says it will come as a great blow to the staff and their families.
Mr Durkan said: "While the difficulties at Stream have been apparent for some time with workers enduring terrible uncertainty, the news of closure still hits with a sense of shock.
"Staff at Stream have been a committed and reliable workforce who have served this company loyally and faithfully for more than 15 years."
Liam Gallagher, Derry Trades Union Council, told UTV: "They have been there for a considerable period of time.
"They were serving one particular contract, that unfortunately now has ended.
"The indications are that the company will now leave the city."
The company also has a base in Dublin.