Engineering firm Cummins has revealed that up to 150 jobs are at risk at its plant on the Royal Oak Industrial Estate in Daventry.
One of the biggest employers in the town, Cummins based on the Royal Oak industrial estate, confirmed the plans yesterday afternoon (Wednesday).
It comes just six months after another wave of redundancies at the firm when 98 people lost their jobs.
Jon Mills from the company said: “We’re doing everything we can to mitigate the impact on employees.”
Mr Mills said staff were being consulted about the proposed job cuts, which would be made in June, but added that compulsory redundancies were “more than likely”.
The councillor in charge of employment in the district, Cllr Chris Over, was shocked to hear the news.
Cllr Over, econonomic, regeneration and employment portfolio holder for Daventry District Council, said: “My thoughts are with the families of those people affected by the news. This is will be a blow to them and the local economy.
“Cummins is an important part of the town because of the manufacturing side of things and we have put a lot of emphasis on the future of the town based around manufacturing.
“This is very bad news for the people of Daventry.”
He hoped Cummins would soon be in a position to start taking on staff again soon.
Cllr Over added: “In previous years when Cummins has announced job losses, it has been in a position to take on staff and I would hope this would happen again.”
Back in October last year, Cummins revealed that 98 people were made redundant due to reductions in demand across all key business sectors including mining and power generation.
Four years ago a total 330 jobs were also lost following two rounds of redundancies.
However, Cummins, which manufactures industrial-sized diesel engines, had seemed to be bucking the trend in the current recession when announcing, in April this year, they were creating 70 new jobs.
Cummins opened in 1973 and currently employs 1,100 in the town.