Scottish timber firm Howie Forest Products has been forced to make up to 18 workers redundant due to the "financial crisis and downturn in building".
The company which operates from Kenmuir Sawmills on the outskirts of Dalbeattie has 149 staff and is one of the largest employers in the area.
Managing Director Hamish Macleod said "Things are a bit tight at the moment with our market badly hit by the financial crisis and downturn in building.
"We are seeking between 12 and 18 redundancies and we are going through a process of seeking voluntary redundancies at the present moment.
"We would not be making the cuts if it was going to turn at Christmas but it looks long-term at the moment."
Mr Macleod said when the market conditions pick up the firm will respond: "We have been consulting with all the staff and as soon as things improve we will be rebuilding.
"It is really frustrating because we have built up a really good market share and we are currently maintaining our share of the market."
(GK/JM)
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