Welshpool, Powys-based firm Trax JH is to shed 17 of its 90 staff due to a significant fall in demand.
The company, which makes automotive wheel balance weights, has blamed the situation on the economic climate.
“The order book is quite flat and so I have had to stop the night shift,” said factory manager Neil Morrison, with commercial director Jim Booth adding: “We are trying to explore new avenues to boost sales rather than keep on cutting jobs.”