Dumfries-based Penman Engineering has made 34 staff members redundant with immediate effect, it has been announced.
The firm made the decision to appoint administrators for the company on 31 August and blamed the delay in the arrival of a major contract.
In addition to the redundancies, union Unite understands that six apprentices are among those being laid off.
Unite regional officer Paul Neilson said the organisation was "shocked" over the apprentices being let go.
"The union obviously feels the loss of every one of these jobs, and we will be working hard with our members to ensure that their rights are protected in this process," he said.
"But we are shocked that six apprentices are among those that the administrators have let go. That is truly devastating. These are young people looking to build a skilled career for life. They need urgent help.
"We will be using our contacts in the private and public sectors to try to make alternative arrangements for these young people, and we hope that others will help us.
"As we have said previously, we will also work constructively with the company and the administrators, so that together we can help secure a new buyer for the company and safeguard job."
(LM/CD)
Scotland
UK
Ireland
London










