Engine-maker Perkins is axing 40 jobs at its factory in Stafford, West Midlands, and releasing 124 temporary workers.
Operatives and management at the manufacturing facility have been offered pay-offs as a result of falling sales, with demand for electric generators particularly low.
Perkins released a statement saying that the “uncertainty in the global economy has had an impact on our customers’ businesses and consequently we are experiencing lower than anticipated production volumes at our Stafford facility.”
Perkins, which currently employs 504 people at its site in Stafford, will make the cuts in January.