KDC/One Swallowfield has announced it will be making dozens of redundancies at its factory in Station Road, Wellington.
Some 35-40 jobs are at risk at the beauty and cosmetics firm which employs 316 people.
The job losses follow a strategic review after the Canada-based Knowlton Development Corporation (KDC/One) acquired Swallowfield’s manufacturing division last year.
The company says the redundancies are not the result of the coronavirus pandemic or Brexit.
KDC/One Europe president Matthew Gazzard said: “This strategic review of our European businesses has been under way since last November. While the decision to make changes in operational personnel at Wellington has not been an easy one, it is necessary to move the business forward and continue to innovate and meet customer expectations in a highly demanding and competitive marketplace.
“We will be working closely with work representatives to ensure all our affected employees have access to the support they need during this time. I realise this will not be an easy time for many and I very much regret that.”
Mr Gazzard added: “We want to stress that this refocussing of the company’s operations is in no way a response to the Covid-19 pandemic or Brexit. We had been strategically reviewing the business structure for many months following our acquisitions in Europe last year before the pandemic arose, albeit the events of recent months requires the company, as with all businesses, to build additional resilience into its operational model.”
County councillor for Wellington and Rockwell Green, Andrew Govier, said the redundancies were worrying news for the area.
He added: “Swallowfield has been a major employer in the town for many years and any loss of jobs would be a major blow.
“I have contacted the firm to take up its offer of further discussions on the company’s future. In addition, I have offered to see if there is any way that the local councils can work with them to minimise any job losses and secure their long-term future in the town.
“I have received a positive reply from the chief executive and I hope to meet with him as soon as possible.”
Town councillor John Thorne, whose late mother was a Swallowfield employee, said: “This is exactly the sort of news Wellington does not need while we are coping with the economic savagery of the coronavirus emergency.
“I feel for the workers and their families who now have to go through a period of intense worry over whether their jobs will go.
“The Swallowfield site has been a major employer in the town for generations and I have many family and friends who have worked there and some who are still there.
“The potential loss of employment here is one reason why we should be making better use of the Westpark business park at Chelston to create well-paid jobs instead of allowing developments such as fast food restaurants which the district council planners are so willing to do.”
Swallowfield Wellington specialises in personal care aerosols and hot pour formulations such as butters, scrubs, waxes and putties. It has a 75,000sq ft production facility and 100,000sq ft of warehousing.
The WWN reported last July, when the proposed £35 million sale of Swallowfield’s manufacturing division was announced, that the company’s workers had been assured there would be no redundancies.