Montgomeryshire politicians have stepped in to help alleviate job losses at Control Techniques in Newtown.
The company, owned by Japanese firm Nidec, is planning to cut 98 staff as part of a "right-sizing" the business to pre Covid levels.
MyNewtown revealed the news last night after employees were given the news.
Most of the jobs are expected to go in the production area at the Mochdre Industrial Estate.
Craig Williams and Russell George, MP & MS for Montgomeryshire, said they are working closely with Nidec and the UK Government to help staff affected by job losses at Control Techniques
Nidec say this decision has been taken in response to current market conditions. A consultation process will begin soon with affected employees and their representatives.
Mr Williams said: “Today’s announcement by Nidec Control Techniques is very sad news for all staff and families who may be affected by job losses at their Newtown factory. Both Russell and I are meeting formally with Nidec officials tomorrow to discuss how we can support staff and the company through this painful process.
“I am also speaking with the Department for Work and Pensions in delivering a Taskforce, so we can ensure that vital support is rolled out to all those who are affected at pace.
“Having already spoken with the Nidec Control Techniques President today, it is clear to me how difficult this decision has been for the company to take. I am reassured that they remain fully committed to remaining in Newtown for the long term.”
Mr George said: “This is incredibly sad news, and my first thoughts are for all the staff who may be affected by job losses and their families.
“Control Techniques has been one of Newtown’s, and indeed Montgomeryshire’s largest and most important employers for many years. Like Craig, I am reassured by the company’s commitment to staying in Newtown, and will be working closely with Nidec and Craig to ensure that affected staff are able to access all of the necessary support they require as quickly as possible.”