The Arts Council has frozen €300,000 in funding for The Abbey Theatre.
It follows concerns its been buying in productions from abroad, resulting in a big drop in opportunities for Irish theatre-makers.
More than 300 people, including Aidan Gillen, Ruth Negga and Tom Vaughan-Lawlor, have signed a letter to the Minister for Culture over how the Abbey Theatre is being run.
The letter was signed by actors, directors, playwrights and agents and designers and detailed their "deep concern and dissatisfaction " with how the Abbey is being run since its Directors Neil Murray and Graham McLaren were appointed in 2016.
The Arts Council has told The Abbey Theatre its funding will be restored once it improves employment opportunities for Irish-based artists.
The theatre says it is taking the concerns "very seriously".